Hello All,
First, happy to find this forum and hopefully will learn more along the way.
I've searched/read some threads that has "mortgage reduction" mentioned. Can't help myself but to start one with regards to my current situation.
Last year, we joined a one-stop shop investment services (let's call it PF) that offers the so-called "mortgage reduction plan (MRP)". Not knowing a lot of things and blinded by the marketing hype we ended up refinancing our loan to an LOC + NIVA structure. This is based on their advise that this is the "best" structure to use for the MRP. The idea is to
At the moment, our PPOR is on this LOC+NIVA loan structure with the following details:
P&I : 7.69%
LOC ($27,500): 7.89% (where all income, rent, tax deductions from variation, etc. will be deposited)
NIVA ($2,500): 0% (monthly expenses)
We're currently applying for a finance for our very first IP. PF submitted our application to BOQ that will have the loan set at 7.16%.
On the side, we're talking to another independent broker who's saying that our current structure is costing so much more compare to if we have it under one lender who can offer 6.89% with 100% offset. We're also going to talk to an independent tax accountant to verify the numbers (I know, we should have done this before hand... )
At this stage, we're waiting for PF to provide us an updated 'Financial Investment Analysis' to prove to us that the LOC+NIVA structure is the way to go....though in my own number crunching, I don't see how it's better if it's costing us more to run it....
Sorry if I'm not making any sense here...Just totally confuse at the moment...
First, happy to find this forum and hopefully will learn more along the way.
I've searched/read some threads that has "mortgage reduction" mentioned. Can't help myself but to start one with regards to my current situation.
Last year, we joined a one-stop shop investment services (let's call it PF) that offers the so-called "mortgage reduction plan (MRP)". Not knowing a lot of things and blinded by the marketing hype we ended up refinancing our loan to an LOC + NIVA structure. This is based on their advise that this is the "best" structure to use for the MRP. The idea is to
At the moment, our PPOR is on this LOC+NIVA loan structure with the following details:
P&I : 7.69%
LOC ($27,500): 7.89% (where all income, rent, tax deductions from variation, etc. will be deposited)
NIVA ($2,500): 0% (monthly expenses)
We're currently applying for a finance for our very first IP. PF submitted our application to BOQ that will have the loan set at 7.16%.
On the side, we're talking to another independent broker who's saying that our current structure is costing so much more compare to if we have it under one lender who can offer 6.89% with 100% offset. We're also going to talk to an independent tax accountant to verify the numbers (I know, we should have done this before hand... )
At this stage, we're waiting for PF to provide us an updated 'Financial Investment Analysis' to prove to us that the LOC+NIVA structure is the way to go....though in my own number crunching, I don't see how it's better if it's costing us more to run it....
Sorry if I'm not making any sense here...Just totally confuse at the moment...