Finance Options

[tester]

Question on my friend's behalf

I have 400 k saving in my acc. Looking at buying an IP.
My target is to get tax deductible 100% loan on that IP and avoid LMI by using 400K as guarantee.

I don;t have any PPOR. I know i could have done that if i had PPOR.

Thx

 

[Rolf Latham]

Hiya

One way

Choose a lender that does term deposits as security for the deposit component.

Doing it isnt hard per se, but cashflowing the short-fall between the taxable income on the TD and the extra mortgage repayment usually means this is a short to middle term strategy.

ta
rolf

 

[Terry_w]

Question on my friend's behalf

I have 400 k saving in my acc. Looking at buying an IP.
My target is to get tax deductible 100% loan on that IP and avoid LMI by using 400K as guarantee.

I don;t have any PPOR. I know i could have done that if i had PPOR.

Thx

Another way... is to borrow the 20% deposit from a related party, wait for some capital growth and then refinance this loan. At the end you should have 105% LVR based on the original purchase price, with no LMI payable.

And consider some asset protection strategies which could be incorporated. That is a rather large sum of money.