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From what you have indicated i cannot see any reason why your application would not be approved.
There is no stipulation on how the loan if required is funded in order to qualify.
If you paid cash for the property you are still entitled to receive the Grant.
Sounds to me like a quick call to the OSR would get to the bottom of it.
Your Broker, Banker or Solicitor should be able to sort it out but rather than rely on someone else ring them yourself.
Llet us all now how you go.
Richard Taylor | Australia's leading private lender
Yes.
Richard Taylor | Australia's leading private lender
Banker,
Yes you are correct that ASIC are still reviewing the referrer regulations but after attending a seminar held by them in Brisbane last Tuesday the advice at this stage is not to take referrered business unless the referrer does so in writing to the customer effective July 1.
I am totally in favour of the NCC rules changes although must admit the transition period between July 1 and Dec 31 will be interesting for some.
Richard Taylor | Australia's leading private lender
Yep they would indeed need to hold a Credit License post July 1.
Interesting that even referers of business need to be licensed.The local Real Estate agent tells Mrs Smith he knows a really good fella to help her with her finance he will need to be Licensed.
Richard Taylor | Australia's leading private lender
Yes they are but you will really pay for it with regards to interest rate.
80% is a lot more favourable.
Richard Taylor | Australia's leading private lender
Ok makes sense.
Couple of things I would do immedately:
1) Switch the loan to interest only with 100% offset account.
2) Assume the property is owned as Joint Tenants / Tenants on Common as the PPOR for both of you. Look to maybe increase the loan to purchase your mother interest or majority of her interest out in the property and increase your borrowing accordingly.
Place the balance of funds in your offset account so then if you decide to move to Melbourne and rent or buy the interest on the increased balance is deductible.Richard Taylor | Australia's leading private lender
You cannot merely refinance your IP's and claim a Tax deduction on the additional interest and then use the funds to pay down your PPOR. Anyone who tells you this is clearly mistaken.
Richard Taylor | Australia's leading private lender
As Banker has mentioned can't see too much of an issue at all.
As the business is already established you wont have to wait for 2 Years Tax returns.
Richard Taylor | Australia's leading private lender
Rather than get them to be a party to the loan there is nothing stopping them lending you the funds at a commercial rate of interest.
You would pay them interest which you could claim as a deduction and they in turn would declare the interest as income.
Also nothing to stop the loan agreement stating that the receive a balloon payment if the property is sold within a given time period.
In saying this there is a lot more information which is required to make a structured answer protecting both parties.
Richard Taylor | Australia's leading private lender
Hi Scott
Is the property solely by you or jointly.
Why did you refinance the loan? Was it to draw out some cash, pay off a loan or otherwise.
Sounds to me like the loan was a P & I loan so hoping it now it is Interest only.
You might have an interest contamination issue if the refinance was to pay out any external debts or raise additional funds.
Also your future action will depend on your current Marginal Tax rate etc so a few more bits of the puzzle would be needed to provide a structured answer.
Richard Taylor | Australia's leading private lender
Hi Andy
I am assuming both loans are standalone (and there is no cross guarantees) given the names on the Title are different.
I am with Terry i think initially I would be buying out your relative and then using setting up a Line of Credit on the balance of the equity to enable you to draw down the deposit and acqusition costs on your future investment properties.
You also have decent equity (subject to valuation) on your own PPOR so there is no reason why the same cant be done here.
Just factor into your numbers that there will be some additional stamp duty to pay when you purchase the balance of shares in the TRARALGON investment property.
Your mortgage broker should be able to provide you with some good options once he is aware of the full picture and your requirements.
Richard Taylor | Australia's leading private lender
Hi Yash
Wow thats not much.
I would be embarrased and certainly not doing my job correctly if i did not disclose all of the fees (upfront and any potential ongoing fees) and charges to a client upfront as the is imperative for any client when they are deciding whether the loan is suitable given their requirements.
Let me know if you want a comparative quote and some number crunching done.
Richard Taylor | Australia's leading private lender
Yash
What sorts of features are you wanting from a loan ?
Remember unless the Mortgage Broker is also a Licensed Financial Planner then he unable to offer you any Financial Advice.Richard Taylor | Australia's leading private lender
Personally i think I would be looking at gearing to a level of 90-95% paying some LMI and investing the balance of your savings into a 100% offset account.
Couple of points worth bearing in mind:
1) LMI is an opportunity cost and allows you to gear into a property now rather than wait until you have saved 20%.
2) Being a loan cost it is deductoble over the loan term or 5 years whichever is the shorter so at least the cost impact is reduced.
3) It gives flexibility in that your savings can sit in an offset account and the funds are not contaminated and can then be used for personal purposes with fear of effecting the deductible interest.Richard Taylor | Australia's leading private lender
Hi Mark
Yes would simply be considered as a Sale and new purchase so whilst if done privately there would be no Selling agents fees there would be Transfer duty payable.
CGT maybe payable and your Bank unless the loan is portable would need to start again and assess your application. Mortgage Registration fees would also be payable.
Richard Taylor | Australia's leading private lender
As long as the land is standard residential and all else being equal then cant see an issue with your idea.
Richard Taylor | Australia's leading private lender
Maximum lvr on an over 55's unit is probably 75% so based on those numbers and as long as everything else being equal it would appear doable.
Richard Taylor | Australia's leading private lender
So did Anz but havent done a franchise loan for 6 months or so.
Richard Taylor | Australia's leading private lender
Hi Dougie
Firstly welcome to the forum and I hope you enjoy your time with us.
Think you are talking to the wrong lenders as there are certainly lenders who will finance deals for owner builders subject to the normal loan conditions.
i assume you can verify your income and everything else is ok should be a problem.
Certainly wont fall into mortgage insurance territory but 70% even 80% is doable
Richard Taylor | Australia's leading private lender
To confirm the security being offered is the franchise?
If so who is your current lender.
Franchising finance is a fairly limited field so will depend on a few things.
If property was used as security then different kettle of fish.
Richard Taylor | Australia's leading private lender
