Hi all,
Just joined after reading forum for months. Would appreciate some advice as my mentor has recently deserted me & I need to know what my options are now.
Currently, my partner & I have:
PPOR bought May 09 420K, IO loan 409K (VIC Aspendale) SVR minus 0.7 discount...asking broker to approach bank for more discount after reading others' successes at doing the same
IP1 bought 05 IO 275K loan (QLD Bris) (Incl 30K LOC, 5K drawn down - just recently worked up the courage to start using capitalising interest strategy, of course to own our own home sooner!) Fixed 4.99 3yrs Jan 09. Rent $350wk
IP2 bought 91 (VIC glen huntly), no mortgage, approx 330K Rent $310wk
IP3 bought 07 for parents to live in (Geelong) - they pay mortgage approx 296K IO. SVR
Westpac have advised we can have 121K in LOC secured by all of the above. These loans were taken out when we were both working. I have been on maternity leave for almost a year, so we're on just one wage & it will be this way for some time. How will the bank view us wanting the 121K LOC? Partner's wage is approx $1400 - $1600 fortnight.
How can we best use the LOC to fund another purchase? Can we use say, 30-50K of this as a deposit for a new property, tell the bank we want another 30-50K in LOC attached to new property for 'reno' purposes, but really for capitalising interest?
Does anyone have any other ideas about how best to move forward?
Thank you for all your advice, I really apprecicate it!
Just joined after reading forum for months. Would appreciate some advice as my mentor has recently deserted me & I need to know what my options are now.
Currently, my partner & I have:
PPOR bought May 09 420K, IO loan 409K (VIC Aspendale) SVR minus 0.7 discount...asking broker to approach bank for more discount after reading others' successes at doing the same
IP1 bought 05 IO 275K loan (QLD Bris) (Incl 30K LOC, 5K drawn down - just recently worked up the courage to start using capitalising interest strategy, of course to own our own home sooner!) Fixed 4.99 3yrs Jan 09. Rent $350wk
IP2 bought 91 (VIC glen huntly), no mortgage, approx 330K Rent $310wk
IP3 bought 07 for parents to live in (Geelong) - they pay mortgage approx 296K IO. SVR
Westpac have advised we can have 121K in LOC secured by all of the above. These loans were taken out when we were both working. I have been on maternity leave for almost a year, so we're on just one wage & it will be this way for some time. How will the bank view us wanting the 121K LOC? Partner's wage is approx $1400 - $1600 fortnight.
How can we best use the LOC to fund another purchase? Can we use say, 30-50K of this as a deposit for a new property, tell the bank we want another 30-50K in LOC attached to new property for 'reno' purposes, but really for capitalising interest?
Does anyone have any other ideas about how best to move forward?
Thank you for all your advice, I really apprecicate it!