No its ok you will still receive the FHOG even if you buy the property on Vendor Finance.Only thing you are likely to pay probably another 20% mark up over and above the purchase price and 1-5 – 2% more than the standard variable rate of interest.If you now the sort of purchase price you are looking for I can give you some indication on the repayments.

Hi OzSorry to hear about your position with the Ex. Never been there but cant imagine it is pretty.If the existing property is in your name and you are servicing the loan why not refinance and use the equity to pull out a deposit for your new home.Then take a new standalone loan against the new property.Structured correctly and subject to equity…[Read more]

Terry W from the forum is based in Sydney and I am sure he can assist you admirably.If you want to post any general questions then we can all provide an opinion on structure.

Hi MarsmacFirstly welcome to the forum and I hope you enjoy your time with us here.Yes what was obviously a good idea initially sounds like a real mess now given the changing circumstances of the parties involved.Tell me where your parents actually on Title or did they merely provide their security as Guarantee. If they are on Title and you wish t…[Read more]

This is the sort of information your mortgage broker should be providing especially if he is Licensed to provide you with investment advice.Certainly wouldnt be taking the SGB special due to the post year rates and the associated costs.I would be taking an IO loan from day 1 irrespective of whether the property is a PPOR or IP as you want maximum…[Read more]

Hi Devo Yes you will still be elligble for the Grant as long as you occupy the property for 6 months within the first 12 months after settlement.

SkuzNo problems in the property being an investment property iniitally and you then moving in within the required timeframe and collecting the FHOG.Depending on the State you may find that you wont get the exemption on the stamp duty however so that maybe a consideration.Also make sure your mortgage broker structures the loan correctly from day 1…[Read more]

Yes the Goverment might give you the Grant but might find it harder than you expect to obtain finance as lenders dont like Owner Builders especially at the higher LVR levels.Also mortgage insurers dont like them either so that will limit your borrowing.Might want to get a contract builder to build it for you.

Think you might find the non conforming lender is almost a thing of the past as most have packed up shop and gone back to the UK.Would need further information before I could ascertain whether the deal could be done.

Just your income and expenditure that would be a start.He could merely do a 2nd mortgage carry back.

Hi thereYes there is no issues in doing what you want to achieve but i think SGB are one of the more expensive lenders when it comes to split loans like their Portfolio rate loan.You can do a lot better than the Dragon as under their Professional package it is a condition of the letter of offer that all loans are cross collateralised…. Not good.

More information would be required before answering that one.As Terry mentioned both mortgage insurers have dipped out of the Lodoc refinance market.How much are you looking to fund over and above the current balance ?St George policy on Cash Out Lodoc is The Low Doc Home Loan is NOT AVAILABLE for:Relocation loan Strata title with extended…[Read more]

oh sorry maybe i misread the post.Definately look to refinance it again especially when you have a non deductible debt.Maybe time to review the rate and features to see if you could better.

Who has said that your borrowing capacity is only $50,000 ?Each lender has its own serviceability criteria and there is a massive difference between the highest and the lowest lender in terms of serviceability.Is your Cousin able to offer you any Vendor Finance to cover your deposit and acqusition costs ?If you can cover these then anything is…[Read more]

A lot of brokers would have no idea about how to do a multi unit complex.As Terry mentioned doing it lodoc maybe a thing of the past due to the recent mortgage insurance restrictions.In saying that with the equity you have in the property there are a couple of lenders who would do the deal as is but unfortunately the Dragon is not one of those.

Just make sure he really is a Licensed Real Estate as it would be unusual for the agent to be Licensed in both Victoria and Qld.Are you sure he is not from a marketing firm offering you these areas where both properties are brand new and the amount of kick back commission he would receive from the developer is difficult to assess.Normally what…[Read more]

Personally i am believer of the Never Sell brigade so would not be selling an IP and paying CGT just to pay down a small non deductible debt.If you pay down the loan probably the first thing you will do is then use as security for a loan to fund a new IP.With interest rates as low as they are if you reqlly want to focus on paying down the PPOR…[Read more]

Which State are you in and do you qualify for the First Home Owners Grant ?

As Eddie mentioned it depends on if it is treated as a business.We have a separate Company that's sole purchase for establishment is to provide Vendor Finance and are Taxed under the emerging profits rule. 

Hi GomezAlways good to share the negatives of cross collateralising loans with a fellow forumite as most banks have it in their interest to ensure that all of your loans are crossed and one or two lenders have their staff on inventive schemes when it comes to maximising security.All i was referring to with the split was that you would have the…[Read more]