I am looking for a new ppor and hopefully will find somewhere in the next few months. I just want to make sure my thoughts on loan set up is correct or see what i might be over looking.
Currently have -
Loan 1 $267,000 Interest only currently ppor planning on making rental once we move. (valued approx $350,000)
Loan 2 $21,000 interest only investment loan drawn from equity on current ppor used as deposit to buy property on loan 3
Loan 3 $145,000 interest only investment loan
Looking to buy valued at $450,000. We could use all of our savings and put the 20% deposit towards this purchase from our offset acct to avoid paying LMI. But then im thinking there is the possibility in 3 years time this house may then be changed into an investment for us as we may be moving interstate for work/family reasons. So if thats the case would i be better off paying the lmi and just putting in 10% deposit and putting rest in offset ? If i do this loan at 80% now can i increase it later to 90% lend if wanting to turn into investment property and pay the lmi then? Because of this thinking planning on doing this loan as IO and saving into offset.
My other question is wether we stay with the same lender - Westpac - or if there would be good reasoning to look at funding this loan elsewhere ?
Also do most lenders allow the stamp duty to go on top of the loan amount or need to be paid seperately? I know the lmi can be put on top of the borrowed funds but wasnt sure on the stamp duty.
Thanks in advance,
Currently have -
Loan 1 $267,000 Interest only currently ppor planning on making rental once we move. (valued approx $350,000)
Loan 2 $21,000 interest only investment loan drawn from equity on current ppor used as deposit to buy property on loan 3
Loan 3 $145,000 interest only investment loan
Looking to buy valued at $450,000. We could use all of our savings and put the 20% deposit towards this purchase from our offset acct to avoid paying LMI. But then im thinking there is the possibility in 3 years time this house may then be changed into an investment for us as we may be moving interstate for work/family reasons. So if thats the case would i be better off paying the lmi and just putting in 10% deposit and putting rest in offset ? If i do this loan at 80% now can i increase it later to 90% lend if wanting to turn into investment property and pay the lmi then? Because of this thinking planning on doing this loan as IO and saving into offset.
My other question is wether we stay with the same lender - Westpac - or if there would be good reasoning to look at funding this loan elsewhere ?
Also do most lenders allow the stamp duty to go on top of the loan amount or need to be paid seperately? I know the lmi can be put on top of the borrowed funds but wasnt sure on the stamp duty.
Thanks in advance,