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?
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?