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Thanks Rolf! Glad to find this forum. Would have been even better if I found this more than a year ago...But anyhow, better late than never... :)

We did take action. Contacted our lender directly. They can put us in exactly the same structure on 6.74% rate - both for P&I and LOC with $3K NIVA card. That is coming from 7.64% (P&I) and 7.89% (LOC) rates of our current structure. They'll treat it as an internal refinance so exit fees will...

Just wanted to clarify on this. Deposit and purchase costs will be coming from LOC. What about the actual repayments for the IP and ongoing expenses (i.e. maintenance, landlord insurance, etc.)? Are they coming off LOC as well? And then we pay the balance of LOC from the offset? :o:confused:

Rolf, First, thank you very much for taking time and providing your inputs. Much appreciated. As you mentioned in one of your earlier post, it won't beat any cashflow analysis. From the looks of it, it is an MRP that requires huge additional payments. And you're right in asking when was the...

This is one of the pages from the FIA presented. They've taken into account that we are paying $3,500 into the loan and we have a surplus fund of around $1,700 which we can put aside and save every month. Not sure what magic calculation they have in here. :confused: :eek:

Thanks Rolf. Back to numbers... PF explanation of the MRP revolves around saving a lump sum and sweeping it to the loan every time we reaches a particular amount - thus paying off majority of the principal by doing so. They're saying that offset only saves the interest and therefore not...

I guess the goal really, as vague as it can be, is wealth creation. Objectives to reach this goal I suppose are: - payoff PPOR mortgage asap - tax minimisation - convert PPOR to IP in the near future - accumulate additional IPs along the way With these in mind and having a combined...

So ideally I should have the following structure? PPOR on PI with 100% offset account for all incoming funds IP on IO with LOC for all investment expenses Interest free credit card Am I getting in the right thought process here? Thanks again for all your help?

Side question...is it true that I'm not allowed to see the result of the valuation done by lender for the IP I'm purchasing?

He did use cross-security and he also mentioned splitting the loan where the PPOR will have an 100% offset account attached to it - but both still will carry the 6.89%...at least that's how I understand it.

Thanks Rolf. I did a similar straight out comparison and here's the result. Am I on the right-track in terms of doing the numbers? I compared the current structure to an ING Orange Advantage where it will give you 6.89% for loans > $500K. So basically combine PPOR and IP into one loan...

P&I = $322,345 LOC = $30,000 (incl the $2,500 for the nil VISA card) As for the approx value, let's put it at $405K. Thanks.

That would be ideal. But at this stage, everything is kinda thru them.:o If we can get out of this IP then I suppose when can drop PF and never have anymore dealings with them.

Hi Rolf, We don't know the exact settlement date yet. Application is still with BOQ. It's a brand new duplex ($336K) and it will be negatively geared. Cheers.

Thanks Terry and Rolf for your insights. Much appreciated. To add to our misery, we're passed the cooling off period for the investment contract. At this stage, we are waiting for the BOQ application to go through. At this stage, we are pushing PF to produce the updated FIA, bring it to an...

Hello All, First, happy to find this forum and hopefully will learn more along the way. I've searched/read some threads that has "mortgage reduction" mentioned. Can't help myself but to start one with regards to my current situation. Last year, we joined a one-stop shop investment...