Hi, I am a newbie in this business.
Partner and I about to purchase our first property with personal deposits + FHOG, a loan from my dad and additional bank mortgage.
We have been advised to have my dad as second mortgager with monies lent secured on the underlying property.
The title will be in my partner and myself's names.
What document will be made for mortgager? Who should draw such a document? Does it have to be approved by first mortgager (the bank)?
I have two siblings and from my dad's perspective this is going to be just another type of investment (rather than gift or help to me) which he wants to have a title for.
Thanks for your expert advice.
The second mortgage is similar to the first (the one by the bank), it is just that the first takes priority.
You will need to get your solicitor to draw up the mortgage document and the loan agreement for your dad – or actually his solicitor should.
The first mortgagee, the bank, will need to give permission to allow the second mortgage, and they will need to factor in your repayments to your dad when they work out serviceability.
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
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