I seek some general advice about how much I could potentially borrow as a top up loan from my IP as security.
I purchased the house in early 2000 for $220k and now assume its worth $520k thus have plenty of equity.
Current mortgage is $190k and repayment is around $920 PCM and thus its breaking even/ positively geared. I want to borrow $30k to buy income producing shares and thus claim a tax deduction on the interest. My tax bill this year was $1700 and thus I dont want to have to pay tax. It makes sense for me to borrow to buy shares which return in income stream, tax effective and potentially increase in value.
I just did my tax return and my Notice of assessment states that my taxable income is $27k. Last year it was around $25k. I dont have a job but earn money from online saver account. i dont know if this will pose a problem ie not working at the moment?
If I list more information below can a mortgage broker punch the numbers and tell me if I can successfully get an additional top up of $30K
- taxable income: $27k interest income from near $500k in online savers account and positive gearing from IP. The savings is not with the bank where my mortgage is. But I can thus prove good savings record
- Interest only repayments $920pcm
- 2 credit cards $20k limit nil balances. I think they take a percentage of these limits?
- Rent is $480 per week from the IP.
- I live overseas at the moment and thus don?t know what to put down as monthly living expenses but maybe put $250 a week
- no overseas income
- monthly insurance premium on the IP $100
I cant think of anything else. Is anyone able to tell me if they think a bank is likely to lend me $30k or $50k based on the figures above?
I really appreciate your opinion. A yes or no answer will thus save me wasting time filling all the forms out.
I did have a $50k LOC with cba but they took it away from me without asking and later said that I hadn?t used it for 3 years. Some new govt nanny state legislation
Many thanks
I purchased the house in early 2000 for $220k and now assume its worth $520k thus have plenty of equity.
Current mortgage is $190k and repayment is around $920 PCM and thus its breaking even/ positively geared. I want to borrow $30k to buy income producing shares and thus claim a tax deduction on the interest. My tax bill this year was $1700 and thus I dont want to have to pay tax. It makes sense for me to borrow to buy shares which return in income stream, tax effective and potentially increase in value.
I just did my tax return and my Notice of assessment states that my taxable income is $27k. Last year it was around $25k. I dont have a job but earn money from online saver account. i dont know if this will pose a problem ie not working at the moment?
If I list more information below can a mortgage broker punch the numbers and tell me if I can successfully get an additional top up of $30K
- taxable income: $27k interest income from near $500k in online savers account and positive gearing from IP. The savings is not with the bank where my mortgage is. But I can thus prove good savings record
- Interest only repayments $920pcm
- 2 credit cards $20k limit nil balances. I think they take a percentage of these limits?
- Rent is $480 per week from the IP.
- I live overseas at the moment and thus don?t know what to put down as monthly living expenses but maybe put $250 a week
- no overseas income
- monthly insurance premium on the IP $100
I cant think of anything else. Is anyone able to tell me if they think a bank is likely to lend me $30k or $50k based on the figures above?
I really appreciate your opinion. A yes or no answer will thus save me wasting time filling all the forms out.
I did have a $50k LOC with cba but they took it away from me without asking and later said that I hadn?t used it for 3 years. Some new govt nanny state legislation
Many thanks
