Arranging LOC, typical fees?

OK. I guess if I'm gonna get "real" about property investing it would seem a good idea to have access to my existing equity (in my PPOR) so I can use it when the time comes...

Our mortgage is presently with BOM (Westpac).

I therefore have some questions:

1. Is RLOC realistically the only worthwhile choice for me? I know there is IO but I don't think those kinds of loans are "revolving" like the LOC are they?

2. What are the typical fees associated with arranging the LOC? Are these negotiable?

3. What are the typical ongoing fees associated with the LOC? Ideally I'd like one with no ongoing fees - because I don't know when I'll be entering the market.

4. Various threads have mentioned "splits"? Do you pay for these splits? Can they be rearranged at will, added or created etc? For example, if you have a total LOC credit of $100K, is it good practice to have 1 split for each IP, or what? And does having all these splits cost you more?

5. Can I expect that I can get my LOC at the same interest rate as my PPOR mortgage? Or (heaven forbid) even better ? Or is there an interest rate premium on account of it being a LOC?

6. What lenders would be considered the best for establishing a LOC at the present time?

And, a question just for Rolf - I know you're in Sydney - but can you/do you provide Brokerage for Melb clients also?
Hi Kev

If you are already with BOM in most circumstances IF you qualify for Premier Advantage then the flick fee should be included in the 300 a year package fee. There will of course be some government costs, however these will be the same regardless of the lender you go with.

The questions youre asking are valid but are getting too deep into detail without knowing what your full financial situation is.

Suffice to say that for most people you can put together a nice combination of Offset and Line of Credit Loans with the BOM package.

BOM rates under the Premier Advantage package are great where borrowings are > 250 in total. There is NO differentiation in rate for the I/O loans or the RLOC, though Westpac's is NOT an evergreen facility.

Id stick with where I was and probably realign the product mix to what im trying to achieve.

Yes I do work in Melbourne as well, though Medine Simmons will work well with you - 0417 317 901 if you are in a hurry.