Hello,
I am currently looking for private/vendor finance to purchase a property and consolidate debts.
We do not have a great credit rating because 2 years ago we lost our daughter, times were tough and we fell quite behind… we are now on top of everything and would like to purchase a unit. So unfortunately the banks will not lend to us… Which is upsetting because we have always been extremely good with our finances and paying rent/loans etc.
What we are after is $240000-$260000 To purchase a unit worth $200000-$225000 in the Penrith, NSW region (I have found a few I am interested in). With the remaining money we would pay of our car loans. We have a deposit of $10000 and can pay money back at an 8% interest rate. We would aim to refinance with a bank in 5-7 years.
We know we can afford this, because the repayments would be less than what we are paying now between loans and rent.
If you can help please contact me. My email is [email protected]
Thanks
Hate to inform you that will be virtually impossible.
Banks will only lend 95% against a property value for squeaky clean borrowers. Private lenders even less.
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 your reply
What if I had someone guarantor? My father owns his property 100%… at the moment it is land, on the beach and he has started building- but like I said its all his! He does not work atm, so no income- but he would be able to offer his property as security.
Would it be possible then?
Yes, it would be possible, depending on the value and location etc.
But still not so easy. If you were working and had good income etc and both properties were taken as security and the LVR was less than 70% and your dad got independant legal advice then a private lender may lend to you. Probably not an institutional lender though.
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
Yes as Terry said that woulld be possible subject to a few points however whether it is the best way forward is a different matter.
Your father could take out a loan in his sole name at a cheaper rate and then on lend the funds to you at the same rate.
Couple of lenders who might look at this.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
The only problem with him taking on the loan is he does not have a very good income atm so I didnt think anyone would lend to him… he does odd jobs here and there but his main priority atm is building his house.
I am not sure how much the property is worth, would be easy enough to ask him- but its at scotts head about a 2min walk from the beach.
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