How much equity would someone need in their home (purhcased for $380,000) in order to act as limited guarantor for a relative for a home valued at $309K?
They would need a fair bit. All loans would need to be at the same bank and no more than 80% of the combined value of the properties.
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
Can you give me figures?
whats the values?
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
Guarantor Property – $380,000
Applicant Property – $309,000Have I provided the right values?? Do you need other??
Should let Terry answer this one but in essence:
Combined values = $689,000
Maximum lvr = 80% = $551,200Subtract the purchase price of $309,000 and say $15,000 for costs = $324,000 and the current mortgage on the security property should be no more than $227,200
Richard Taylor | Australia's leading private lender
Thanks Terry and Richard!!
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