Second opinion wanted - setting up loan structure for first time

[Aaron_C]

Getting a bigger LOC is good. Just make sure you drawdown on it a bit as the bank can revoke it at any time if they think you aren't using it at all.

 

[christos]

Getting a bigger LOC is good. Just make sure you drawdown on it a bit as the bank can revoke it at any time if they think you aren't using it at all.

Thanks Aaron - how much do you need to substantiate the reason for increase - (i.e we are talking basic refurbs - cleanups/update kitchen/bath, used for investment deposits)? This has been mentioend on other posts - gues it depends on lender

Alternatively I could do what is suggested here which is similar but would involving changing the LOC on IP 1 to an I/O loan and then getting another LOC for a smaller amount - i.e 25k/50K etc etc but that sounds like the end result is the same
http://somersoft.com/forums/showthread.php?t=56930

 

[Aaron_C]

Thanks Aaron - how much do you need to substantiate the reason for increase - (i.e we are talking basic refurbs - cleanups/update kitchen/bath, used for investment deposits)? This has been mentioend on other posts - gues it depends on lender

Alternatively I could do what is suggested here which is similar but would involving changing the LOC on IP 1 to an I/O loan and then getting another LOC for a smaller amount - i.e 25k/50K etc etc but that sounds like the end result is the same
http://somersoft.com/forums/showthread.php?t=56930

Some lenders need a reason - some don't. Macquarie in particular is quite good on their 'cash out' policy whereas the big 4 aren't so.