SearchRefinance and restructure?
Jay asks:
(updated on Monday, September 24th 2012)
I have a rental which was once the family home four years ago. I haven't set up the mortgages properly and have a positively geared rental mortgaged at about 50% of its GV value. Can I refinance and move some of my home mortgage on to the rental? If so, what would that involve?
Our Experts Answer:
What we recommend doing here is, firstly, make sure you are using different banks for both your owner occupied property and the investment property. This removes the risk that comes from cross securing the mortgages together. Secondly, I would be looking to gear the investment property to about 80% of its value. The reason I normally don't go higher than this is most lenders won't let you go interest only if you are above 80% and you are better to pay interest only here and concentrate on paying principal down on the mortgage connected to your own residence. Also you will often find that lenders are not as competitive when lending above 80% LVR so you want to make sure that you get the best pricing possible Thirdly, make sure that you seek advice from your accountant in regards to how you should be structuring your mortgages as part of the remaining debt on your own home may be able to be structured for better tax efficiency as well.
Most Read
| Unity First Home Buyer special | 3.99 |
| SBS FirstHome Combo | 3.99 |
| TSB Special | 4.39 |
| Co-operative Bank - First Home Special | 4.39 |
| ICBC | 4.39 |
| SBS Bank Special | 4.49 |
| Unity Special | 4.49 |
| ANZ Special | 4.49 |
| Westpac Special | 4.49 |
| Kiwibank Special | 4.49 |
| Co-operative Bank - Owner Occ | 4.49 |
| ICBC | 4.59 |
| ANZ Special | 4.69 |
| TSB Special | 4.69 |
| BNZ - Std | 4.69 |
| Wairarapa Building Society | 4.79 |
| Nelson Building Society | 4.87 |
| Westpac Special | 4.89 |
| Co-operative Bank - Owner Occ | 4.89 |
| Kiwibank Special | 4.89 |
| SBS Bank Special | 4.89 |
| Unity Special | 4.89 |
| ICBC | 5.19 |
| Westpac Special | 5.29 |
| TSB Special | 5.29 |
| BNZ - Std | 5.29 |
| SBS Bank Special | 5.69 |
| Co-operative Bank - Owner Occ | 5.69 |
| Kainga Ora | 5.69 |
| ASB Bank | 5.69 |
| AIA - Go Home Loans | 5.69 |
| Kiwibank Special | 5.79 |
| Westpac | 5.89 |
| SBS FirstHome Combo | 3.29 |
| AIA - Back My Build | 3.34 |
| SBS Construction lending for FHB | 3.74 |
| CFML 321 Loans | 3.95 |
| 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 | 5.75 |
| Unity Standard | 5.79 |
