Borrowing

[commando]

Hi

Need some advice on the best way to proceed.

We are looking at getting our first IP, currently have PPOR worth around $700k with a mortgage of just under $200k. We also have around $150k in an offset account.

My question is this should be borrwow the whole amount for the IP or use some of the $150k as a deposite so as to avoid mortgage insurance etc.

Cheers.

 

[Twitch]

Welcome to the forum.

Good news, you can have your cake and eat it too.

Borrow the deposit and costs (20% deposit plus costs) secured against your PPOR
Borrow 80% against your IP
Don't touch 1 cent of your offset

That is the most tax effective method and you wont pay mortgage insurance.

 

[commando]

Welcome to the forum.

Good news, you can have your cake and eat it too.

Borrow the deposit and costs (20% deposit plus costs) secured against your PPOR
Borrow 80% against your IP
Don't touch 1 cent of your offset

That is the most tax effective method and you wont pay mortgage insurance.

Thankyou, that is excatly what I was looking for.

Cheers