Hi,
Recently we refinanced a loan (say IP1) to extract equity as well as make the LVR from 80% to 90%.
Here are the numbers.
Loan Paid Out= $290 K
LMI = 6K
Registration of Mortgage = $162.90
Registration of Discharge of Mortgage = $162.90
Title search fee = $27.90
Surplus Funds = 59K
New Loan = 355.5K
Now, I'm going to use the Surplus Funds (59K) as deposit for another IP (Say IP2).
Q1. Do I need to treat all costs (LMI & other) as 'capital' cost?
Q2. Interest for 290K goes with IP1. Interest for 59K goes with IP2. That is clear.
What do we do with other costs? Do they go against IP1 or IP2?
Recently we refinanced a loan (say IP1) to extract equity as well as make the LVR from 80% to 90%.
Here are the numbers.
Loan Paid Out= $290 K
LMI = 6K
Registration of Mortgage = $162.90
Registration of Discharge of Mortgage = $162.90
Title search fee = $27.90
Surplus Funds = 59K
New Loan = 355.5K
Now, I'm going to use the Surplus Funds (59K) as deposit for another IP (Say IP2).
Q1. Do I need to treat all costs (LMI & other) as 'capital' cost?
Q2. Interest for 290K goes with IP1. Interest for 59K goes with IP2. That is clear.
What do we do with other costs? Do they go against IP1 or IP2?
Last edited: