Hi All,
Have a few questions need to be answered by someone who have been in a similar situation.
Basically I have 1 IP and 1 PPOR and am looking at buying another PPOR and making the current one an IP. With my PPOR I currently have $60k in equity and personally I would like to draw this equity out and use this as deposit and renovation money for the next PPOR.
I have contacted my Lender (CBA) and the lender asked me why i want to do a top up and then borrow again why not just use the equity to borrow instead of two steps process.
My understanding is there are some benefit of doing top up instead of straight borrow against the equity. Could someone please guide me on which path to take?
And do i need to do anything if i want to make the current PPOR to become an IP? also should i just buy the next PPOR as IP?
Thanks for any help!
Tony
Have a few questions need to be answered by someone who have been in a similar situation.
Basically I have 1 IP and 1 PPOR and am looking at buying another PPOR and making the current one an IP. With my PPOR I currently have $60k in equity and personally I would like to draw this equity out and use this as deposit and renovation money for the next PPOR.
I have contacted my Lender (CBA) and the lender asked me why i want to do a top up and then borrow again why not just use the equity to borrow instead of two steps process.
My understanding is there are some benefit of doing top up instead of straight borrow against the equity. Could someone please guide me on which path to take?
And do i need to do anything if i want to make the current PPOR to become an IP? also should i just buy the next PPOR as IP?
Thanks for any help!
Tony