Top up loan or extension to existing loan

[JD86]

Hi guys,

I have just built my first house and I am very happy with it.

A kerb side valuation came in at $310k and my loan is for $232k. I need a lot of stuff done around the yard and would like to put in air conditioning, so I am considering borrowing an extra $8k to fund these things and round loan up to $240k.

My mortgage broker is suggesting either a top up loan or extension to existing loan. I am currently waiting for he's email reply to tell me what the difference is.

I would also like to know if, by taking this extra loan will it make claiming interest on loan when the house becomes a rental difficult?

Any help or suggestions would be appreciated.

Josh

 

[Rolf Latham]

If the purpose for the money remains the same as the base loan, id be tempted to top up the exist loan if the lender allows

Simpler

ta
rolf

 

[JD86]

thanks for your reply Rolf, yes the purpose is for stuff for the house. i just dont want to top up the loan and in a year or so when it is a rental property, have difficulty figuring out how much % of the interest i can claim because of this little $8k top up

 

[Rolf Latham]

Hi Josh

Im not a accountant, but if all the dosh goes inot ficing the place, then its all deductible in terms of the interets bill.

ta
rolf

 

[JD86]

thanks rolf

 

[JD86]

i would appreciate anyone elses input on what they would do in my situation aswell

thanks