Forum Replies Created
Catherine
Yes there are lenders out there who will take the property as security but it would depend on 101 factors.
Richard Taylor | Australia's leading private lender
Do a search on the TIC as this has been asked and answered 1001 times previously.
Richard Taylor | Australia's leading private lender
You could have both but personally i would recommend an offset account to a client on the basis they have no other non deductible debt.
Richard Taylor | Australia's leading private lender
Hi Dawn
Firstly welcome to the forum and I hope you enjoy your time with us.
Look sorry to say this but i dont think you or your Bank have an understanding of the required set up and clearly they do not appear to be acting in your best interest.
I assume it was a simple typing error but Anz do not offer Interest free periods at all only interest only periods.
Interest deductability is based on the Title holding and not whose name the loan is in.
Also the "purpose test" applies and not merely the security where the loan is taken upon.I think to get some unbiased advice you should consult a independant Mortgage Broker as they will be required to provide this for you under NCPP whereas at the moment your Bank do not have to fall under the legislation for another 6 months.
Richard Taylor | Australia's leading private lender
Many lenders do like taking dual key apartments as security but i am not quiet sure if this is what you are looking to purchase.
A lot more information would be need to assess the deal correctly and provide you with some structured advice.
Richard Taylor | Australia's leading private lender
Your Broker is correct and Steve has clarified this in several posts.
Richard Taylor | Australia's leading private lender
It is a redraw not an offset account.
Had a lot of clients come a cropper with the same product.
They went there because the bottom line interest rate looked attractive and didnt read the fine print.
Richard Taylor | Australia's leading private lender
dtrump
Yes i guess MC are fine if you want the sausage factory 1 loan fits all style of Broker who could have had upto 6 week experience since he gave up work as a brickies labourer.
Hate to say MC are merely a franchise and you get exactly what you dont pay for.
Thankfully under the new NCPP which came into effect July 1 a lot of Brokers will be taking into consideration things like service levels when the recommend a loan which is not unsuitable.
Some of what fredo has mentioned is accurate other bits unfortunately not quiet true.
There are good and bad areas with every lender and customers will have different experiences with them.
I can remember when Anz where taking 17 days to open a file and Wesuck where upto 23 days to even look at a deal. Rams regularly where over 4 weeks.
As a 4 Star NAB Broker i personally dont deal with Homeside but directly thru the NAB but in saying all of that if you are looking for a no frills style cheap alternative you cant go past Advantedge a NAB wholesale loan. Agin no frills no costs no ongoing fees and service levels are very good if you do volume with them.
Richard Taylor | Australia's leading private lender
Christian is correct however there are other factors to consider.
It will boil down to the overall lvr and your Credit score.
Some lenders will run off the purchase contract others will want anything from a driveby or computer produced val to a full valuation by a Professional valuer.
Too many variable to give you a definate answer.
Richard Taylor | Australia's leading private lender
Yes but few and far between.
Need good credit score and accept that it is standard variable rate only.
Also would need to be in an accepted post code area for the MI.
Richard Taylor | Australia's leading private lender
Hate to disagree with our previous poster but i certainly would not join the loans together.
As Terry mentioned keep them separate and structure so they are both standalone.
Richard Taylor | Australia's leading private lender
Hi thirsty
Personally i would like to see the land loan secured against the property itself to free up the equity in the investment property for further investment.
Transfer the land loan and then set up a standard construction loan to complete the building.
Richard Taylor | Australia's leading private lender
Terry's point about very little negative gearing benefit is the reason i suggested a UT structure with your husband holding the Units.
Richard Taylor | Australia's leading private lender
Hi Papina
I have just answered zara's other post and you might want to read this first as it covers the issue.
Richard Taylor | Australia's leading private lender
Hi zara
Firstly welcome to the forum and i hope you enjoy your time with us.
What you need to bear in mind is that the interest on funds redraw from your current lender will not be Tax deductible so redrawing the current loan is probably not that wise.
As it stands the rent will be added to your Gross income and there will be no Interest Deductions.
To compensate this you certainly could look at selling the property into a Unit Trust structure however this would trigger stamp duty and possible CGT depending on the current value. Given the new loan amount this could still be a viable option.
Remember it is not a matter of just borrowing $580K.
Personally i would look at an interest only loan with 100% offset and look at borrowing the full purchase price & stamp duty costs(subject to serviceability). The gift together with the deposit could sit in the offset account in case you decide to move out in the future and want to rent this property out.
You current lender will probably have no idea on how to structure a sale to a Unit Trust and should be advising you on Tax matters anyway. A good investment orientated mortgage broker should be able to crunch the numbers for you.
Richard Taylor | Australia's leading private lender
Perhaps Dazz can tell us which lenders come post 1 July allow Vendor Finance as an alternative finance option.
I am not aware of any lender but am always happy to be corrected.
Richard Taylor | Australia's leading private lender
Hi Tracey
Yes ironic isnt it that as i mentioned earlier a Broker has to ask for such additional document but a couple of the Banks can still do a loan both purchase and refinance on a stated income basis for another 6 months.
Richard Taylor | Australia's leading private lender
Hi Don
Hate to say if he is from the Bank say a mobile lender unlikely he will have the knowledge or experience to structure it correctly.
Some of things client have told me bankers have told them makes me shudder.
I agree the same with some Brokers but that is why you try and use someone with half a grain of experience.
Richard Taylor | Australia's leading private lender
Hi William
Have no problems in writing them but i ask for BAS and Bank Statements.
Seems to me incredible that a Broker cannot write a lodoc loan unless he can deem that the loan is not unsuitable for a client yet the same client can then walk straight into a lender direct and they can write the deal until Jan 1 11.
Must admit have declined a couple of deals already under NCCP.
Richard Taylor | Australia's leading private lender
Sorry they want you to pay $395 to get you to go their inhouse Mortgage Broker in another State to be told whether you can afford to purchase one of their over priced properties.
I think i would be running a mile.
Richard Taylor | Australia's leading private lender
