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cashflow mortgage

Discussion in 'Finance & Banking' started by Triu, 9th May, 2007.

  1. Triu

    Triu Well-Known Member

    Joined:
    1st Sep, 2006
    Posts:
    161
    Location:
    WA
    Hi anyone used the investors direct cashflow mortgage product? Is it any good and is there another way of borrowing to get the same effect for cashflow control?

    The rate is high though any ideas on how to use it or something similar?
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Why not borrow at a higher lvr, lower interest rate and invest some of the funds to generate cashflow (or indeed use the debt to pay interest) rather than take up an expensive product which has a limited lvr?

    Just my preliminary thoughts.

    Cheers
    N.​
     
  3. Triu

    Triu Well-Known Member

    Joined:
    1st Sep, 2006
    Posts:
    161
    Location:
    WA
    Thanks Nigel because i am still learning about these strategies, can you explain further. Each time i speak to my finance broker he does not really tell me about finance strategies in a way that benefits me. It is more like this rate is good etc.
     
  4. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Set out:

    1) the interest rate
    2) the maximum LVR
    3) the situation re lenders mortgage insurance
    4) the amount of interest which may be capitalised over the first few years of the loan

    for the cashflow mortgage and then we can all deconstruct it and run numbers for everyone's benefit.

    Cheers
    N.