SearchLoan structure options
Julie asks:
(updated on Monday, August 08th 2016)
I'm wondering what the best loan structure is for me. I've decided to rent out my house (which has 10% of the mortgage to be paid off on a principle+interest loan) and am about to purchase another two rentals (one title with two rentals).
How should I structure my loans? I would like to use interest-only on the two new rentals. Should I change my initial house to an interest only or continue overpaying the mortgage in an attempt to pay it off?
As I am flatting again, I may look at purchasing a home late in the year. However, it may be a better opportunity to purchase another rental before the end of the year if possible.
Our Experts Answer:
I am presuming you will have no personal debt once you move out of your property and that all debt you hold will be tax deductible (best to check this with an accountant). If this is the case then it is really a situation where you need to weigh up whether debt reduction or increased cash flow is more important to you.
One option is to structure part of the mortgage as either a floating, revolving credit or an offset facility where you can pay more should you decide to but can reduce your payments back to the interest only amounts should you want to relax your required payment amounts.
Most Read
| Unity First Home Buyer special | 3.99 |
| ICBC | 4.25 |
| SBS FirstHome Combo | 4.29 |
| Co-operative Bank - First Home Special | 4.35 |
| TSB Special | 4.39 |
| Co-operative Bank - Owner Occ | 4.45 |
| ASB Bank | 4.49 |
| SBS Bank Special | 4.49 |
| Unity Special | 4.49 |
| Westpac Special | 4.49 |
| Kiwibank Special | 4.49 |
| Westpac Special | 4.45 |
| SBS Bank Special | 4.49 |
| BNZ - Std | 4.49 |
| Kiwibank Special | 4.49 |
| TSB Special | 4.49 |
| AIA - Go Home Loans | 4.49 |
| ASB Bank | 4.49 |
| Co-operative Bank - Owner Occ | 4.49 |
| ICBC | 4.59 |
| Wairarapa Building Society | 4.59 |
| Unity Special | 4.65 |
| SBS Bank Special | 4.99 |
| Westpac Special | 4.99 |
| ICBC | 4.99 |
| BNZ - Std | 4.99 |
| AIA - Go Home Loans | 5.15 |
| ASB Bank | 5.15 |
| Co-operative Bank - Owner Occ | 5.19 |
| ANZ | 5.39 |
| TSB Special | 5.39 |
| Kiwibank Special | 5.39 |
| Kainga Ora | 5.49 |
| SBS FirstHome Combo | 3.29 |
| AIA - Back My Build | 3.34 |
| SBS Construction lending for FHB | 3.74 |
| CFML 321 Loans | 4.25 |
| Co-operative Bank - Owner Occ | 4.99 |
| Co-operative Bank - Standard | 4.99 |
| Heartland Bank - Online | 5.30 |
| ICBC | 5.39 |
| Kiwibank - Offset | 5.65 |
| Kiwibank | 5.65 |
| ANZ | 5.69 |
