Our medium term plan is to transfer our current PPoR from my wife's name to mine, and turn it into an IP. (Vic so no stamp duty)
There'll be about 50% equity in the house, so I'm trying to get my head around the most effective way of leveraging it as much as possible, as it'll all be tax deductible, and whatever I can borrow will go to the wife to buy our next PPoR.
How do banks handle this type of thing? Let's say the valuer says it's worth $1m, and there's a $500k mortgage on it at the time of transfer. Will they be happy to give me an $800k mortgage, and give my wife $300k cash?
And if (big if) the LMI market gets back to normal in 12-18 months time, would they be happy to give me a bigger loan, with LMI?
The mortgage is currently with CBA.
Cheers
Jonathon
There'll be about 50% equity in the house, so I'm trying to get my head around the most effective way of leveraging it as much as possible, as it'll all be tax deductible, and whatever I can borrow will go to the wife to buy our next PPoR.
How do banks handle this type of thing? Let's say the valuer says it's worth $1m, and there's a $500k mortgage on it at the time of transfer. Will they be happy to give me an $800k mortgage, and give my wife $300k cash?
And if (big if) the LMI market gets back to normal in 12-18 months time, would they be happy to give me a bigger loan, with LMI?
The mortgage is currently with CBA.
Cheers
Jonathon