How to structure your home loans.
Whether you are purchasing a home or an investment property, it is important to structure your home loans correctly. This will help you get the most out of your borrowing power over the long term, and ensure you can take action to achieve your financial goals through property.
Things we consider when looking at loan structuring.
At Zinger, we consider loan structuring to be a crucial part of every property purchase. We look at the following aspects when helping our clients get finance:
1) Are we declaring the right debt?
2) Are we over or under declaring owner occupier versus investment debt?
3) Are there any accounting benefits to what the client’s current structure holds.
Structuring doesn’t end after the first purchase.
While it is important to get your structure right from day one, it is also important to revisit it during every purchase you make.
If you are building a property portfolio, structuring is something that could either help you move forward or hold you back.
Just as a good property investor will constantly review their strategy, a savvy borrower will reassess their loan structure at every step of the way.
Restructuring your loans.
One thing we look at with clients who have become stuck in their current structure, is whether restructuring will help.
We have helped lots of people who couldn’t move forward with their property investing by reassessing their situation.
One of our clients had a fairly large investment portfolio as well as a home that they were paying off.
We went back to when the initial loan was set up and reviewed their accounting information.
We were then able to restructure their existing portfolio and free up their position. This allowed them to continue on their investing journey.
If you are unsure about how to structure your home loans, the best thing you can do is talk with a broker who specialises in this. Not all brokers put time and effort into setting up loans in the best way for their clients, so make sure you choose one who will listen to your goals and help you tailor a strategy for success.