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From: Anna Novakovic
Hi all,
I am just about to purchase my first IP. I have spoken to my accountant who has stated that I have enough equity in my home to purchase an IP.
I have been doing my own research for the past 8 months on potential IPs and the property market and am now in the process of arranging finance.
I have read previous postings on LOCs, deposit bonds, I/P loans and IO loans.
My question to you all is what is the best way to borrow as much as possible for the IP? In the past I have placed most of my earnings against my home mortgage, as I have a redraw facility (if I get desperate), so as to pay off as much as possible against my home and reduce my interest there.
I was thinking of getting a deposit bond for the deposit and borrowing as much as possible for the settlement, or do I have to redraw my money from my home mortgage to the % the banks will lend me. eg 80%.
Will all institutions want my home as security as well as the investment property and to refinance my home loan as well.
I want an fixed IO loan for 5years for the IP, but I didnt really want to have to refinance my home mortgage.
Am I better of getting an LOC (not that I understand these very well, I guess thats why I am asking).
I have approached a mortgage broker, but want to be informed when they start providing me with different options.
I am based in Melbourne but am buying interstate, so what are the pitfalls?
Any information would be greatly appreciated.
Thanks
Hi all,
I am just about to purchase my first IP. I have spoken to my accountant who has stated that I have enough equity in my home to purchase an IP.
I have been doing my own research for the past 8 months on potential IPs and the property market and am now in the process of arranging finance.
I have read previous postings on LOCs, deposit bonds, I/P loans and IO loans.
My question to you all is what is the best way to borrow as much as possible for the IP? In the past I have placed most of my earnings against my home mortgage, as I have a redraw facility (if I get desperate), so as to pay off as much as possible against my home and reduce my interest there.
I was thinking of getting a deposit bond for the deposit and borrowing as much as possible for the settlement, or do I have to redraw my money from my home mortgage to the % the banks will lend me. eg 80%.
Will all institutions want my home as security as well as the investment property and to refinance my home loan as well.
I want an fixed IO loan for 5years for the IP, but I didnt really want to have to refinance my home mortgage.
Am I better of getting an LOC (not that I understand these very well, I guess thats why I am asking).
I have approached a mortgage broker, but want to be informed when they start providing me with different options.
I am based in Melbourne but am buying interstate, so what are the pitfalls?
Any information would be greatly appreciated.
Thanks
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