?Equity? to our property ? CBA and frustration.

We have 2012/2013. Accountant is doing 2013/2014.. another frustration because it's a new accountant since the previous one retired. The new mob cant give a date :-(

What are the 2013 financials like? I would be leaning on the new accountant to get new financials done up ASAP. Will make future borrowing a lot easier.

Did you mean we can declare the rental income without CBA taking mortgage over our 2nd IP?

Absolutely, but you would have to own the property or signed contact to purcahse the property. Can't borrow the funds based on planning to buy IP and get rent as this might not happen.

As mentioned earlier you want to ensure that the borrowings are structured in a manner thats not going to impact you in the future. Make sure the loans aren't x-coll. Each loan should only be secured by ONE property. You can have a property that secures multiple loans, but don't want loan secured by multiple properties.
 
Thank you. I understand now. It also doesnt matter that we have some cash and shares sitting somewhere...

No that doesn't affect servicing.

Actually it does matter and can affect servicing.

Pending the amount bank can use a 'deeming rate' for investment income. Acceptable investments include -
- shares listed on the ASX 300
- reputable managed funds
- interest earning assets with reputable financial institutions
- interest bearing government securities.
(note investments can't be used if they have a related loan - margin loan)

Current deeming rates are

Over $48,000 3.5%
$2,000 - $48,000 2%
Less than $2,000 0.50%
 
As an inexperienced borrower which you have admitted to, you might not even be asking the right questions of your bank which is leading to the frustration.

In other threads you have said that your hubby hasn't worked for 2 years and you've just been made redundant. Both these things will be of concern.

If you want proper advice talk to a couple of brokers (inc Brady) on here. Explain every single thing, what you want to do and see what they suggest. You can then take those ideas back to CBA or apply to another bank via broker.

If the $750k equity is split over 2 loans then you may only be able to 'release' up to 80% LVR if you don't want to pay LMI on each which might not be enough for what you want to do.

There is no rush. Take it slow. Work out what is the best way forward and what you can or can't do within your situation.
 
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Actually it does matter and can affect servicing.

Pending the amount bank can use a 'deeming rate' for investment income. Acceptable investments include -
- shares listed on the ASX 300
- reputable managed funds
- interest earning assets with reputable financial institutions
- interest bearing government securities.
(note investments can't be used if they have a related loan - margin loan)

Current deeming rates are

Over $48,000 3.5%
$2,000 - $48,000 2%
Less than $2,000 0.50%

Your irght Brady - I was assuming the poster only was talking small amounts but this may not be the case.
 
Hang on are there any special repayments (redraw) available? Its sounds like you paid down the loans very much ahead of schedule from $740K to $250K?

You might just be able to redraw funds to buy another place then do some post settlement splits / substitutions of security????
 
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