I have just gone through setting up a company/trust for my future investments. However, although there are many banks that will lend to new Trusts, I can’t find one who’ll lend to me (as director) as I need to use Lo Doc. It’s very annoying since the properties that I am looking at are all cashflow positive & able to service the debt on their own, without my financials coming in to it. I have had 2 brokers look into it & they had no-one on their books that could do it.
Surely I’m not the only one out there with this problem – Can anyone tell who they have used in the past.
I work for a wholesale mortgage manager and looking through the 5 funders that we use, most are able to do this deal. If you want to email me I can let you know what lender will do it.
We do not deal with retail clients, we only deal with brokers and I also have direct access to funders credit departments, so I can also check with them if I need to.
Hi JewelAngel,
There are a few lenders who offer low doc products to a trust, however the appropriate choice of lender will depend on the required lvr, post code, loan amount etc etc, feel free to email or call me with these details if you require assistance, cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
The only low doc lenders that will not lend to a trust are:
ANZ
ING
SuncorpLow Doc Lenders that will:
Bankwest
Macquarie
Adelaide Bank
Integris
etcThe problem you may be facing is that most low doc loans are mortgage insured and the mortgage insurers are picky about location. Therefore it is probably the area that is the problem.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for the info everybody – but I left out one VERY important thing.
I am looking at buying five units on one title right now & thinking about a block of units comiing up in the future.
I realise that this is my problem finding a lender, but do you still know of any who could help with either of these (they are in regional towns that are O.K with the mortgage lenders apparently)
thanks again
JewelAngel
oh thats too funny.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneThe funny thing is that with a multiple dwelling situation of more than a duplex(2) and definitely 5 like you suggest, mortgage insurers will knock it back as a bad risk.
It is not a standard deal and with a trust as well, good luck.
Have any of these lenders suggested the additional charges for reading your trust documents and the delay in approval of finance that this usual entails.
Again……..good luck
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!That’s a big thing to leave out!
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Five units on One title, in that case you will need commercial finance.
I doubt you will get 80% LVR on a commercial low doc, possibly 65% to 70% LVR depending on the deal, be prepared to pay higher rates, approx. 10% to 11% and set up costs of approx. 1% to 2%
Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
You will find that the most that a mortgage insurer will do is 4 units on one title. I had a scenario this week where a brokers client had 4 units on one title and 6 units on another title. The most the mortgage insurers would do was 4 on one title full doc and this was talking to the mortgage insurers underwriters and getting a decision on it before the loan was submitted.
I even spoke to the non conforming funder that we use,(I am not a broker but I am a state manager for a mortgage manager which has a lot of pull in the industry) and I was told that the most they would do lo doc was 4 units on one title and there was virtually no chance of getting funding for anything above 4 units let alone lo doc.
I then spoke to another funder that told me that they will look at anything above 4 units on 1 title, as long as it was 70% lvr or less and it was a full doc loan.
Hope this helps
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