Best Caveat Deal

Posting on behalf of a family member. 

Does anyone know where my relative can get a good caveat loan from for $30K with low interest rate per month.  Preferably between 6-12mths, most likely 7-8months.

What is the overall lvr pre caveat.

Where is the security I assume it is residential.

Realistically between 2-6% per month is the likely rate so not exactly cheap but certainly quick.

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

Hi Richard,

An agent appraisal valued his home for $320K. 

I'm not sure how these things go....I'm just guessing.....would LVR be 90% for $32K caveat?

Yes....the security is residential in NSW.

Not aware of anyone who would do that lvr on a caveat loan.

Usual max would be 75-80%.

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

Try a building society for a personal loan instead. They have interest rates as low as 9%.

Think you will pushing it for a P/L at that level even secured.

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

RIchard can you explain how LVR works with a caveat?

So how much would they be able to borrow if the value of their property is $320K?

Maybe 80% of the valuation if they are lucky over a short term of say upto 12 months.

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

jhk, how much is owing on the property? then richard can answer your question

Add the caveat to the mortgage and devide by the value of the property.

E.g.

Current mortgage. 256K
plus caveat. 32k

total debts against security. 288k

288 / 320 = 90% LVR

Given that it is monthly interest you might need to borrow to cover some of the costs. Establishment fees and legal fees can be high.

Why not tell us what it is for?

For most purposes the benefits do not justify the costs however there are exceptions.

Agree with Banker i cant see any reason at all unless it is a very short term and for some unbeknown reason you dont want to approach a conventional lender or you need the money this afternoon. 

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

He is owing $255K  on the property.

He has tried approaching conventional lenders, but he has a default on credit history from 2006 (under $300) and he needs funds immediately.  It is for investment purposes.

Ok understood.

Back to what i said earlier wont get more than 80% and will need to demonstrate an exit plan i.e sale of property etc etc

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

ok.  I understand how it works.  Maybe not worth pursuing!