I am about to call my broker and run this scenario, thought I would get some advice here to ensure I'm as informed as I can be prior to calling.
We are looking to purchase a PPoR (in NSW) ~650-700k and plan on using an IP for the deposit.
IP Val $250k
Loan $130k
Equity @90% $95k
This IP works nicely to cover costs on the purchase at a 90% lend.
Currently this loan is with MyRate, we are unhappy with their service and my understanding is they don't deal with brokers as they have their own internal brokers.
To this end we are looking to refinance this loan and release the equity for a deposit with my broker. My question is what is the best way to do this? If we just refinance at 90% then tax wise things are a nightmare. Do we establish a loan and a LOC? Will many lenders do a LOC to 90%? Will the (smallish) size of the loan be problematic? Anything else we should be aware of?
Thanks
We are looking to purchase a PPoR (in NSW) ~650-700k and plan on using an IP for the deposit.
IP Val $250k
Loan $130k
Equity @90% $95k
This IP works nicely to cover costs on the purchase at a 90% lend.
Currently this loan is with MyRate, we are unhappy with their service and my understanding is they don't deal with brokers as they have their own internal brokers.
To this end we are looking to refinance this loan and release the equity for a deposit with my broker. My question is what is the best way to do this? If we just refinance at 90% then tax wise things are a nightmare. Do we establish a loan and a LOC? Will many lenders do a LOC to 90%? Will the (smallish) size of the loan be problematic? Anything else we should be aware of?
Thanks