Not sure what sort of ‘product’ your friends are referring to.

If you cannot afford the repayments, then the only product that is going to help you is a loan where you can capitalise the interest. To do this, you are going to need a lowish LVR to start with = higher deposit.

If you could afford the higher deposit, then the other option is to put down a small deposit and keep some money for the repayments.

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Many people keep refinancing back to IO loans at the end of the IO term. A good option is to get a 100% offset against your loan so you can store excess cash there until you need it. This helps reduce interest without having to pay off the loan too.

Also, with IO, it may not really matter in the long run (if property keeps rising). Imagine if you bought a $16,000 property in Sydney 30 years ago. It would now be worth about $800,000 – one years rent would pay that loan off, it you had kept refinacing at the end of each term.

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It depends on the LVR. I think ANZ have one of the cheapest rates if under 60% LVR, and the loan is on the breakfree package with the 0.7% discount.

But, they will not do low doc loans for companies or trusts.

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That’s the case with ANZ, but not all lenders.

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Just ask for a “release of security” form.

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Tajik,

Sorry, I misunderstood the post. I agree its the ownership that’s important for these issues.

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sounds like a structural problem. Have a reread of the contracts regarding the guarantees and contact the company.

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I think it may be too late. If you have exchanged contracts and the trust does not exist, then you may have a problem – better check with a solicitor.

If ok, you may need to get the loan to be redone. The title to the property will be in the name of the Trustee, but the loan needs to be in the name of the unit holder. The bank will also require a copy of the trust deed so they can have it reveiwed too. The loan shouldn’t be too much of a problem to change, but they may want to charge you a reword fee if documents have to be prepared again.

Who will the trustee be and who is your lender?

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Dom

You seem to want to not go through a broker for some reason.

There are a few banks that do not require valuations on properties under a certain value and a certain LVR – sometimes 80%.

Other lenders just require a kerbside valuation.

But it all depends on the location/postcode, the amount, the LVR, the lender, whether it is a purchase or refinance and if a purchase whether there is a real estate agent involved (they are wary of people rorting things).

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Do you have a loan on the land? If so, holding the land till next April will result in you having to pay 5 months of interest – have you factored this into your Calcs?

And do you think you will be able to sell for more in April?

I suppose you also have to factor in the interest saved by plonking the money off the loan on your unit in Sydney.

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