We have an offer to buy our property. However they will give us funds upfront, and pay out our mortgage later. So we keep the title and loan in our name but they pay for all the upkeeping of the house.
This means that it will make it harder to borrow money to buy another property because we will still have this debt right? Despite it being fully serviced?
Im after anyones thoughts.
Regards
Looti
I can’t understand why anyone would do that. Do you mean they are going to pay you in full now, and let the title transfer later? This is very risky for them!!
If so, you could just pay out your loan now, or just pay cash for the next property.
Terryw
Discover Home Loans
Parramatta
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No, they service our loan every month until they decide to refinance from us. They will also give us funds upfront. The title and also the loan stays in our name.
Like some sort of wrap.
Yes this will effect borrowing capacity as you still have a loan. But they are paying this, so you can declare this as income.
Terryw
Discover Home Loans
Parramatta
[email protected]
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
But in essence I mean they could keep this loan for years! Its not good to have a mortgage thta u dont really have anymore hanging over your head…
Do alot of people do this? Apparently its more common now. Anyone done this or had it done or know how it works?
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