Loan structure Bank west to boq

Dear experts,
Thanks for all the valuable information, I have learned a lot.

I would like to seek some opinion on my loan structure.

PPOR 90% loan with bankwest, and yes I paid LMI. I also have equity release 60k never been used in seperate account number. 70k saving, the PPOR has capability to produce another 30k equity.

I am buying 300k IP through boq no LMI 90% 3.99 fixed rate. Planning to use PPOR equity to pay deposit and stamp duty.

Now I want to buy another 300k IP , variable this time. At the same time the BankWest fixed loan (partial fixed partial variable) is about to become variable in 3 weeks. I am intending to move all loan to boq because they promised 4.29 variable if I go through with them with all my loans and no lmi.



Do I ask BankWest to reduce 60k equity to 40k which is 10% ip plus stamp duty then request another loan split to 40k for second ip. Or I move my PROP to boq after the first ip purchased then request two 40k split. Would it be too massy for tax?

Hope I explained my situation properly,and appreciate your valuable comments.
 
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Just to clarify, the 90% one with bankwest with 60k equity is your PPOR. And the one you're buying through BOQ is an IP or a new PPOR?

Do you plan to be an investor? or are you content with having just these properties you're setting up now? Reason i ask is because this is going to become a pain for you down the track when you try to grow as they're not very favourable to investors.
 
90% borrowing with equity is a PROP
60k equity+I have 70k saving as well in the variable loan.

I am buying the 300k as investment property, and trying to offer another one as well.

Yes I want to be an investor
 
DT is right - both those lenders aren't investor friendly, so if you're hoping to release equity in the future from these guys, I'd sit down with a broker who understands investment lending and go through it with them.

It sounds like at the end of what you're doing, you'll have 3 houses, is that right?

Which one is your PPOR?
 
DT is right - both those lenders aren't investor friendly, so if you're hoping to release equity in the future from these guys, I'd sit down with a broker who understands investment lending and go through it with them.

It sounds like at the end of what you're doing, you'll have 3 houses, is that right?

Which one is your PPOR?

BankWest loan is PPOR, that's my appartment, living there with my husband
 
Just to clarify, the 90% one with bankwest with 60k equity is your PPOR. And the one you're buying through BOQ is an IP or a new PPOR?

Do you plan to be an investor? or are you content with having just these properties you're setting up now? Reason i ask is because this is going to become a pain for you down the track when you try to grow as they're not very favourable to investors.

I edited my question, sorry it was a bit confusing
 
I would do it this way -

1. Buy IP 1 using BW equity.
2. Refi PPOR, and get 3 splits - 1 - PPOR debt 2- IP 1 Deposit and cost 3 - IP2 deposit and cost. Make sure they do not x-coll you. Get the low rate.
3. Buy IP2 with finance from any bank you choose. If going with BoQ, again, make sure they do not x-coll you.

This keeps each debt separate which makes knowing exactly which interest goes with which property easy.
 
I would do it this way -

1. Buy IP 1 using BW equity.
2. Refi PPOR, and get 3 splits - 1 - PPOR debt 2- IP 1 Deposit and cost 3 - IP2 deposit and cost. Make sure they do not x-coll you. Get the low rate.
3. Buy IP2 with finance from any bank you choose. If going with BoQ, again, make sure they do not x-coll you.

This keeps each debt separate which makes knowing exactly which interest goes with which property easy.

Some things cant be stressed enough!


pinkboy
 
I would do it this way -

1. Buy IP 1 using BW equity.
2. Refi PPOR, and get 3 splits - 1 - PPOR debt 2- IP 1 Deposit and cost 3 - IP2 deposit and cost. Make sure they do not x-coll you. Get the low rate.
3. Buy IP2 with finance from any bank you choose. If going with BoQ, again, make sure they do not x-coll you.

This keeps each debt separate which makes knowing exactly which interest goes with which property easy.

Is a rent collector a specialist?
 
I would do it this way -

1. Buy IP 1 using BW equity.
2. Refi PPOR, and get 3 splits - 1 - PPOR debt 2- IP 1 Deposit and cost 3 - IP2 deposit and cost. Make sure they do not x-coll you. Get the low rate.
3. Buy IP2 with finance from any bank you choose. If going with BoQ, again, make sure they do not x-coll you.

This keeps each debt separate which makes knowing exactly which interest goes with which property easy.

Really appreciate your valuable input.
I just signed the second ip today with similar price a bit under 300k.

Now I quickly called BankWest to request a loan split to fund the second ip 10%+ stamp duty

Also called boq to change contract to variable for the first ip as soon as I heard the interest rate cut. I am considering giving boq the second ip to catch the no LMI deal also they promised further discount after second ip given to them.

Planning to negotiate a better rate with BankWest for PPOR, with all my loans 90% there are not many choices for my current situation.

I am interested to know in which way boq is not investor friendly.I do know putting all loans in one bank is risky.
 
They have pretty tight servicing - assuming the Specialist range uses the same calc as normal BoQ. But who knows - they don't offer brokers specialist so we're all none the wiser :)

Assuming it's similar, and you're growing a portfolio you'll find that once you have a few properties and the BoQ ones are growing, you won't be able to access equity b/c you no longer service with them. And b/c you're at a high LVR, you will be up for LMI if you move.

Also BoQ don't have DUA, so there's double credit hits for each application, and deals are generally a bit riskier due to needing approval from both the lender and the insurer.
 
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