G,day.
Would like some help with our finance situation.Their is 3 of us who need to get finance for a house we are going to buy,do up and sell.It will be on the market within 4 to 6 weeks from settlement date.We need to borrow the hole lot.Purchase price,goverment payments ,renorvation costs and loan repayments.We have seen a broker and i am not happy with him but we still may have to use him.He has recommended we use a deposite bond for the deposite.Some real estate agents have said they wont take these so we are concerned about them.We have been told getting the money is viable with an interest rate of 7.50% so that is all good.My worry is the deposite bond?Dan
In the case where you are borrowing 100% + on the security of the purchased property alone you will not find any lender will advance any of the funds until such time as settlement has taken place and he has title to the property hence i would suggestion your broker has suggested a Deposit Bond.
If you are also offering equity in another property as additional security then you would be able to draw down on the equity prior to settlement.
Also watch out for the early repayment penalties on a 100% + loan as they will be high. Not aware of any lender that advances renovation costs on the security of the property itself upfront so your broker maybe confused as to what you are trying to achieve.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:DanIn t.
If you are also offering equity in another property as additional security then you would be able to draw down on the equity prior to settlement.
Also watch out for the early repayment penalties on a 100% + loan as they will be high. Not aware of any lender that advances renovation costs on the security of the property itself upfront so your broker maybe confused as to what you are trying to achieve.
We are using an incumbent home that is worth 70% of the propert we are negotiating on.
CheersIf you have equity in another security why not use a line of credit rather than a deposit bond.
Richard Taylor | Australia's leading private lender
Some of the exit fees can be horrendous. There is one 100% loan out there with a 5% exit fee in the first year!
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
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