Topping up home loan

[primal]

Hi guys,

I hope this topic relates to this forum.

I have a investment property which I bought two years with a mortgage on it . Obviously it's value might have increased.

I am thinking of buying a franchise business. Should I take separate business loan and pay interest on it or should I top up my existing home loan mortgage and use it to pay for business investment.

[Nick G]

I would get advice from an accountant and lawyer on potential risk and best structure. The mortgage stuff is secondary.

[artemis]

Matthew Gilligan's book Tax Structures 101 is a good read to get thoughts in order before taking further advice.

[mortgage broker]

In this environment it will come down to what kind of options you might need later. If you can, keep it separate, if things get tough you can exit better.

[Anthonyacat]

From a risk perspective, better to keep them separate, but the single-lender risk isn't exactly a huge one. From a cost perspective you'll find property lending much easier to secure, and cheaper. I had a hell of a time trying to get lending for a business purchase recently. The banks just aren't interested.

Either way, speak to your accountant to ensure the most effective structure is in place.

[primal]

Which is the best bank to go for a small business loan.