First Home - Many Questions ???

From: Jay Hunter


firstly, I want to let you know this a fantastic discussion forum! one day I hope I can also be in a position to offer some constructive advice to people looking at IP's.

I am wanting to buy my first home and would like to be in a position soon after to start buying IP's... this brings me to many questions!

I'm looking to borrow $230k to purchase a $400k unit (first home & will get the 7K). After I have some more of this paid I would like to start on IP's.

Once I find a home I'm happy with and stop renting (hate that)... I will have a mortgage of about $230K:

Do I get a variable rate mortgage and fix it later if int. rates start to rise ? Split the loan from the beginning ? hmmm so many options!

What do people think about the Westpac Rocket repay home loan ($300/year fee) ?

how much do I need to get the loan down by before I can start on IP's ?

should I own IP's in my name or place them in a trust ?

any help would be greatly appreciated.
Last edited by a moderator:
Reply: 1
From: Ian Findlay


I’d get a LOC (line of credit) mortgage. Interest payments will be very slightly higher but it gives you much more flexibility.

Re getting the loan down for buying Ips. First calculate how much you need for the deposit say 20% and buying costs (about 4.5 to 5% of purchase price) so about 25% of your IP. Then see how much you can redraw from your LOC account – hopefully more than the sum above

Last edited by a moderator:
Reply: 2
From: Rolf Latham


Depending on your income you can buy the Equity loan that comes with the Rocket deal at 6.22, mixed with the normal term loan, good rate LOC flex.

Whether it suits your situation is hard to tell, since one would need a little more (private) information like what you earn, spend, payment cycles etc etc.


Last edited by a moderator: