Which State are you referring to.

If it is Qld never use the "Cooling Off" period to terminate the Contract.

Hiya Whip

Welcome to the forum.

Regretfully neither SGB, Westpac or any of the major Banks offer Nodoc style loans as this is the domain of the securitised and specialist lenders.

If you father is self employed and has had an ABN for 1 day we should easily be able to obtain a LVR of 70% for him.

With a bit more information i can give you more details of whats on offer.

I agree with Alistair and whilst he is unlikely to tell you he is a mortgage broker based in Melbourne and well respected on this forum in all property related matters.

Dont think you can go too past giving him a call.

Yes it has been the case since July 2000.

I understand Alistairs words of warning and agree with him but think every client is slightly different and has different needs and requirements.

One of the EMF deals i did was for a client who wanted to buy in Noosa and couldnt afford waterfront on a traditional loan but using EFM could. They were happy to part with 40% of any future profit as they got in today and will not be making any repayments on the 20%. 

Hi Elka

There are several ATO rulings on HDT which are totally different to the question being raised here.

In simple terms let us assume that you own your current PPOR valued at $300K with no mortgage and wish to rent it out and at the same time want to buy another house to live for 300K as well.

If you borrow the $300K to buy the new PPOR irrespective of what the security will be then the interest is not tax deductible as it fails the ATO "Purpose Test".

What you would do is sell the original PPOR which is probably held as Joint Tenants to your Trust for $300K and pay stamp duty on the value of the Transfer.

The Trust would then borrow an amount of $300K to buy the investment property (originally your PPOR) from yourself and the full amount of the interest becomes deductible as the purpose of the funds were to buy an investment property.

As you receive the $300K and have no loan upon the property you can now pay cash for your new PPOR.

Remember an HDT is not the only structure you can use although the ones we use appear to comply with the ATO ruling on such.

Hope this now makes sense.

You friend has little alternative as the agent is correct if the loan is not repaid and the vendor has not made arrangements with the lender to clear up the possible negative equity then they will not release the mortgage.

In saying this if your comment about the Bank taking the house in 2 months is correct the vendor would be severally in arrears (A lender cannot not start action until the borrower is 3 months in arrears) and litigation well underway and hoping for a Court hearing shortly. Why doesnt your friend wait and look to buy the property when it is mortgagee in possession.

Hi Peter

Any new loan secured against the property for equity release will need the approval, consent and signature of all parties to the title.

Easiest way is to take out 2 split loans (some lenders will allow you to have the loans in individual names i.e you and your wife and the other in the name of yoru sister and her husband) with an underlying guarantee signed by all 4 parties.

Only problem would be if they dont want to move forward and access their equity and refuse to sign the new mortgage loan documents.

Thanks Lisa interesting to know.

Also as a securitised lender every loan is mortgage insured which will also restrict your future investing.