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  • Profile photo of Richard TaylorRichard Taylor
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    Oh the old $2 Company Guarantee.

    Yes we had a few of those in Brisbane before the Company went bust and the Directors disappeared.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    There is a big difference between a wrap and a second mortgage carry back.

    I have been involved in each for over 13 years here in Qld.

    They loan argreements between each type of contract vary considerably and your usual suburban Solicitor may not have a clue.

    As Terry mentioned financing the deals these days as far as the incoming purchaser is concerned is not easy.

    Richard Taylor | Australia's leading private lender

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    There is a big difference between a wrap and a second mortgage carry back.

    I have been involved in each for over 13 years here in Qld.

    They loan argreements between each type of contract vary considerably and your usual suburban Solicitor may not have a clue.

    As Terry mentioned financing the deals these days as far as the incoming purchaser is concerned is not easy.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    SAS Yes they will do 6 under the Commercial lending policy and always have.

    Think both Terry and I were referring to residential terms.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Hi Maree

    Yes hate to say they certainly do in fact the criteria is even tighter than normal.

    Richard Taylor | Australia's leading private lender

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    Hi Raeywn

    Sorry but this is clearly incorrect and I think Steve has issued a couple of corrections to this comment in his book.

    Richard, I was under the impression that it would increase borrowing capacity. (That was the main reason I liked the idea)  It was explained that the debt would be in the name of the company as trustee and the directors act as guarantors for the loans.  Once you exhausted your borrowing capacity with one bank, you could then set up another trust and go to another bank.  I thought that the directors' incomes could be used multiple times because the directors only have to guarantee to repay the loans

    It certainly does NOT increase your borrowing capacity.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Yes and they are not alone Wpac changed their sometime ago.

    NAB is max 3.

    Still the odd lender who will go to 4 and 1 I am aware of who will go to 6 but in the main 4+ is commercial rates.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    GOM

    Westpac withdrew their Lodoc refinance with unlimited cash out at Pro pack rates product around September last year.

    They knew that no other lender was doing cash out refinance at those rates so when you went with them there was no chance you could ever leave.

    Westpac only in January reduced their max lvr to 87%.

    CBA have only recently tightened up their policy again.

    Dont again me wrong they had a first belt tightening 18 months ago but most lender had been through further notches on their belts.

    Richard Taylor | Australia's leading private lender

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    GOM

    Who said CBA or WPac want to grow their Credit Book.

    If you see the increase in lending from both of these lenders over the last 18 months you can see why they are prepared to manage existing lending rather than persue new growth.

    Up until 4 months ago both taking on absolute rubbish so it is not suprising that the brakes have been applied.

    JHK. Good luck for Friday hope they pull through for you. 

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    GOM

    Who said CBA or WPac want to grow their Credit Book.

    If you see the increase in lending from both of these lenders over the last 18 months you can see why they are prepared to manage existing lending rather than persue new growth.

    Up until 4 months ago both taking on absolute rubbish so it is not suprising that the brakes have been applied.

    JHK. Good luck for Friday hope they pull through for you. 

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    If they approve the loan i understand they are out too 2 weeks or so.

    'In saying this they have ramped up their Credit score recently and seem to be declining more than they approve.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    There is no difference in buying in Trust with a Corporate Trustee over buying in your own name as far as borrowing capacity is concerned.

    I accept that many Brokers and indeed lenders wont understand a Trust structure and also that many wont offer you the same rate discounts and package benefits however that is not to say they dont exist.

    An experienced Mortgage Broker should be able to guide you through the maze and make things clearer to understand.

    Just note that setting up multiple Trusts will not increase your capacity to borrow.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    We are not all doing so because we have to. Some of us carry on working because we enjoy it.

    Please don't say 'see a financial planner'. If they knew how to be financially free then why are they still working!?

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    shahabr be careful as a lot of areas are not acceptable for SMSF lending especially some of the smaller regional areas.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Hi Mike

    Hate to say it is a comment i get from new clients at least once or twice a week that their own Bank have said NO and it all boils down to how the loan has been structured in the first place.

    I have written many an aricle on cross collateralising so wont repeat them here same to say that as GOM mentioned if set up properly you always have options however if set up incorrectly you end up boxing yourself into a corner with limited ways out. 

    Course it is difficult to comment on your position (And the same for Fredo) without all of the information to hand but there isnt too many clients we deal with where we are unable to do anything.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    WWF

    Young Investor works for NAB so hopefully he might anwer your question. 

    Every deal i have done with NAB here in Brissie they have asked for PG's.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    As Dan mentioned financing a deal in a HDT is getting harder and harder so if your lender has told you that you have pre-approval I bet they werent aware you maybe using a HDT or even a UT with some lenders.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Terry beat me to it but even at 0.7% over 15 years on 100K that is 10% savings over the term of the loan.

    Certainly would rather have it in my pocket than the lenders.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Hi Matthew

    Firstly welcome to the forum and hope you enjoy your time with us

    Hard to comment without knowing more about them but assuming they are lowset basic finishes then you are probably looking at around $850 / square metre.

    Depending on which area you are in you might find one of the big Contract builders would look at the deal (I have recently done a couple through Dixon Homes and they were good value and excellent quality and service.

    On the question as to whether you should use a Broker or not well must admit i am slightly biased however that is after years of seeing how Banks have no idea on how to structure a loan for investors and will hardly tell you that you could do better elsewhere. 

    Even though it only a duplex you would suprised that some lenders will not like 2 properties on the same Title.

    A Broker can give you more choice and flexibility. 90% should be available all things being equal.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
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    Terry is right.

    Most lenders wont have a trouble in lending to a Discretionary Trust however in saying that not all lenders will offer you the same competitive loan terms and interest discounts where their is a Corporate Trustee.

    I can think of a few with the features you are after.

    Richard Taylor | Australia's leading private lender

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