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From: Kevin Fielding
I have just been to see the loans manager at the bank to get some advice on how to structure the loans for my IP.
She suggested the following:
With an investment loan of say $140,000 for the IP, the bank will loan 80% of this bringing the loan to $112,000. The remaining 20% ($28,000)is classed as deposit and is added to my existing mortgage of $40,000 bringing it to $68,000. To this is added $6000 borrowing costs bringing this loan to $74,000.(p&i with minimum repayments)
Can someone please advise if this is the best way to structure the 2 loans.
The interest on the deposit amount of $28,000 can’t be tax deductible if it’s added to my existing mortgage can it??
Some help would be much appreciated.
Regards,
Kevin
I have just been to see the loans manager at the bank to get some advice on how to structure the loans for my IP.
She suggested the following:
With an investment loan of say $140,000 for the IP, the bank will loan 80% of this bringing the loan to $112,000. The remaining 20% ($28,000)is classed as deposit and is added to my existing mortgage of $40,000 bringing it to $68,000. To this is added $6000 borrowing costs bringing this loan to $74,000.(p&i with minimum repayments)
Can someone please advise if this is the best way to structure the 2 loans.
The interest on the deposit amount of $28,000 can’t be tax deductible if it’s added to my existing mortgage can it??
Some help would be much appreciated.
Regards,
Kevin
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