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From: Lan Diep
Hi All
Recently I made my first offer for an IP
Nice little brick house in my local area for $145k....Thought I'd start small.
However when I signed the letter of Offer at the Real Estate office, the agent asked me that a 10% deposit was required for the property within 5 days from the date of Vendor acceptance. Because I am using Equity in my current home, I am borrowing 100% from the bank.
The issue with this is when the bank provides me with the 100% Home Loan - this includes my 10% on the property. So, how does the bank calculate the interest on the loan?
1) Time of my deposit?
2) Time of settlement?
I can't seem to understand how if they lend me the money at the time of settlement , will they not charge me any interest for the time between the deposit and the settlement? Or will they charge at two different rates?
Thanks in advance for any expertise.
Lan
Hi All
Recently I made my first offer for an IP
Nice little brick house in my local area for $145k....Thought I'd start small.
However when I signed the letter of Offer at the Real Estate office, the agent asked me that a 10% deposit was required for the property within 5 days from the date of Vendor acceptance. Because I am using Equity in my current home, I am borrowing 100% from the bank.
The issue with this is when the bank provides me with the 100% Home Loan - this includes my 10% on the property. So, how does the bank calculate the interest on the loan?
1) Time of my deposit?
2) Time of settlement?
I can't seem to understand how if they lend me the money at the time of settlement , will they not charge me any interest for the time between the deposit and the settlement? Or will they charge at two different rates?
Thanks in advance for any expertise.
Lan
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