I have heard that the term All Money Clause is on a lot of finace contracts and you should avoid it if possible. What does this clause mean or refer to and what are the implications. If the finance cocntract has the clause can it be deleted. They hold the upper hand!.
This is basically a clause that the property you are mortgaging can be used for all debts owed to the bank. So not just the loan for the property but other loans or debts. This may include credit cards or even other housing loans with other people. You can attempt to negotiate this out of the contract, but it is a standard term and they will not delete it – unless maybe you are a huge client
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
Personally i dont think how big a client you might be the lender will just not remove or amend the AMC.
Richard Taylor | Australia's leading private lender
Yes, probably right Richard. One way to avoid it is to use different banks. But in the end if you get a behind and the bank gets a judgment against you for a shortfall after repossession then they can come after all property you own.
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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