Hi Guys
I am interested in knowing what are the pros and cons of setting up LOC on my existing loan and topping up my existing loan ((to take the total borrowings on this security up to 80% LVR)
My current situation is:
Loan Amt left on my PPOR - $193,000
Lender for my Current property - My Rate
Current valuation of existing property as per Residex Report - $325,000
Investment property purchase price - $320,000
Possible Weekly Rent return - $370.00
I would like to use equity ($130,000) build up in existing property to take on 100% investment loan with CBA. CBA is advising me I would have to pay 10% deposit as they cannot use equity on existing property as it is with another lender.
Workaround:
I have been suggested I can structure my loan in one of these 2 way:
1. Setup LOC on existing loan and use equity to pay for deposit on IP.
2. Top up my loan to max 80% LVR and use that amount to fund my IP 10% deposit.
Please confirm which option would allow loan deductions to be used as 100% of the purchase price and which is the best way to go for.
Thanks
I am interested in knowing what are the pros and cons of setting up LOC on my existing loan and topping up my existing loan ((to take the total borrowings on this security up to 80% LVR)
My current situation is:
Loan Amt left on my PPOR - $193,000
Lender for my Current property - My Rate
Current valuation of existing property as per Residex Report - $325,000
Investment property purchase price - $320,000
Possible Weekly Rent return - $370.00
I would like to use equity ($130,000) build up in existing property to take on 100% investment loan with CBA. CBA is advising me I would have to pay 10% deposit as they cannot use equity on existing property as it is with another lender.
Workaround:
I have been suggested I can structure my loan in one of these 2 way:
1. Setup LOC on existing loan and use equity to pay for deposit on IP.
2. Top up my loan to max 80% LVR and use that amount to fund my IP 10% deposit.
Please confirm which option would allow loan deductions to be used as 100% of the purchase price and which is the best way to go for.
Thanks