Daniel if they are "old school" and i understand their reasons why then they would not be wanting to put up their security for your property purchase.

If they have a loan on the property they would need to refinance to whichever lender you go with as you wont easily get a lender to take a 2nd mortgage behind someone else.

Sounds to me like you might have to save up to get the deposit which could be 10% plus costs and do the deal on your own.

Realistically you will need 5% minimum deposit saved over a 3-6 month period plus acqusition costs and LMI.

Depending on your Credit score that may increase to 90% so regretfully i think i would read and save at the same time.

10% of $300,000 is $30K and that would be a minimum.

Crests figures are about right however i think you would get a slightly higher lvr on the motel security itself.

Agree with Terry your parents would be far better off to take out a loan for the 20% deposit and then gift this to you (even if you pay them back at the same rate of interest) than offer their security up for a family pledge style loan.

If the loan is over an 80% LVR both the mortgage insurers will require evidence of genuine savings for a minimum of 3% of the purchase price over a 3-6 month period.

The saving with the Stamp Duty concession and the FHOG could be paid back directly to your parents on Settlement to reduce their loan.

Rule of thumb would be that you could probably borrow around 5 x annual income so if $250K equals 80% of the loan then they will need to come up with $60K + less FHOG.

Only thing you need to bear in mind is that the lender will want to revalue the security that you are retaining and ensure that the loan to value ratio is mainted within its normal guidelines.

I have financed literally 100's of clients doing just what you are doing and never had an issue.

Fredo firstly Merry Xmas to you also.

I thi9nk i read you are in Qld so if correct NO there is no way to Transfer your properties to a DFT without incurring Stamp Duty and YES CGT could be triggered on the Transfer value depending on a 101 points.

Nothing wrong in starting all future acqusitions in Company / Trust name.

Lenders wil go to the same LVR when buying in Pty / Trust however you might find there are less interest rate discounts offered i.e Pro Pack benefits with some lenders and also the set up costs are normally more as the Deed and Constitution need to be read by the lenders legal dept to make sure all complies.

Your Broker should be able to give you other options when it comes to acquiring in such a structure.

LMI will be nearer $8K and if capitalised will be more because the LVR is greater.

Remember because the loan is over $500K then the premiums start to leap.

Sure your broker has told you would be better off to split the loans between 2 different lenders to reduce the cost or alternatively use a relocation loan lender.

To be honest i am slightly unsure as to what you are referring to.

I have never come across any lender that applies a buffer as you have described.

Simply if the lvr (which is the new loan as a percentage of the new valuation) is over 80% then you will incur mortgage insurance.

On your figures loan seems to be at 84% so LMI would be incurred but in saying this you would structure it so that you minimised the loan by using 2 different lenders. (LMI on a total loan over $500K will not be cheap).

Not sure which State you are buying the block in but at those figures it certainly isnt Qld.

There are not costs for Mortgage registration / Transfer or discharge and not sure who your loan broker but he is kidding himself if he things the deal would be done at 10% especially on lodoc and DEF fees of 1K per unit is ridiculous.

You would add in probably around 3% for application costs and a further 0.5% for both Bank valuation and maybe $2500 for lenders legals.

A GR loan is like no other and you have limited lenders (mainly private lenders) who can and do charge what they like.

I assume of course you aren't going to undertake any "substantial renovation" to the unit as if so this would trigger a GST payment.

Jas

Yes with a decent equity injection from your friend then a gross realisation loan maybe possible.

Mainly these lenders want to see either some previous experience or pre-sales or at least the deal well covered by security.

Subject to the numbers interest capitalisation could be possible but the rate of interest and set up costs wont be cheap.

We have done a couple of similar deal over the last couple of months and very few lenders with such a risk appetite.