How to finance?

W

WebBoard

Guest
From: Noel Griffiths


Hello to all.I am seeking some collective advice re: finance for 1st IP(havent purch. yet)
-Currently have a revolving LOC via Citibank on my existing house. 70K available for use.
-Do I use 10%of LOC as dep.on IP and borrow the remainder?Will need approx.210/230K
-Refinance totally to another bank putting both properties under the one umbrella i.e.,NAB "Choice" package if anyone knows it.
-Ultimately wish to own outright 1st IP(place for divorced sister to live)thereafter not fussed.
-Live in Aspendale,Melbourne.
Thanking you in anticipation

NOEL
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1
From: Russell Chellew


Hi Noel,

I would recommend refinancing out of Citibank as there products are not all that competitive these days.

I would suggest Westpac/Bank of melb "premier advantage package" currently @ 5.97% variable for both Line of Credit & 100% offset if total borrowings are over $250K (which appears to be the case)

Good luck !

cheers

Russell
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1
From: Terry W


It may be better to try and get as high a LVR as possible on your first property - especially if you are going to get more. The more property you get, the harder it is to qualify for high LVRs. So stretch your money while you can.

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


Hi Noel

This issue has more to do with where you want to go in the future rather than a specific product issue.

The best product sounds like the Russell recommendatiion with a caveat that if you are looking to do more property in the future as Terry hinted, you may look at a
high LVR lend like ANZ 97ish lend with an interest only facility.

If you still have private (non tax deductible debt on your home I would suggest you kill that before tackling the IP debt,

If you have minimal non tax deductible debt and you dont want to buy much more property in the future, then think about putting 20 % down to avoid mortgage insurance.

Best bet is to have coffee with and independent broker like Russell or Medine and see what your options are.

Ta


Rolf


Rolf
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1
From: Noel Griffiths


Thanks to Russell,Terry and Rolf for there replies and anybody else who takes the time out.

Cheers

Noel
 
Last edited by a moderator:
Top