G'day all.
I am just wondering what the best way to set up a capitalising loan is?
Which lenders are keen to lend with this strategy?
What criteria/conditions normally apply to these loans?
I understand the potential benefits of capitalising interest especially when a non deductible PPOR loan is current.
This strategy is not suitable for me due to my current loans being high in LVR which would likely reduce my capabilities to continue to capitalise any interest.
Can someone please describe the structures involved for these two capitalising interest scenarios? LOC structure etc.
1.) PPOR $500k value. Nil loan.
intending to purchase IP to value of 500k.
2.) PPOR $500k value 50% LVR 250k Loan
IP 1 $500k value 50% LVR 250k Loan
intending to purchase IP 2 to value of 500k.
Thanks in advance
I am just wondering what the best way to set up a capitalising loan is?
Which lenders are keen to lend with this strategy?
What criteria/conditions normally apply to these loans?
I understand the potential benefits of capitalising interest especially when a non deductible PPOR loan is current.
This strategy is not suitable for me due to my current loans being high in LVR which would likely reduce my capabilities to continue to capitalise any interest.
Can someone please describe the structures involved for these two capitalising interest scenarios? LOC structure etc.
1.) PPOR $500k value. Nil loan.
intending to purchase IP to value of 500k.
2.) PPOR $500k value 50% LVR 250k Loan
IP 1 $500k value 50% LVR 250k Loan
intending to purchase IP 2 to value of 500k.
Thanks in advance