Certain lenders i can think of have CC as a Condition of their Letter of Offer so even splitting the loans doesnt get around the underlying problem.

Cheers

Yours in Finance

Residex is a property report based on a computerised model.

It provides a Comparative Market Analysis including demographics, comparable sales in the area, median pricing etc.

Not perfect but often helps with your overall due diligence.

Cheers

Yours in Finance

In essence add your Gross rental income to your other PAYG income and then from this figure take off your deductible cash and non cash expenses.

Tax is then paid on the reduced net figure. (Example 1 in your post).

Cheers

Yours in Finance

No definately not.

Cheers

Yours in Finance

Hi Dean

Hate to say that buying the property using a Trust structure has absolutely No bearing on your ability to borrow additional funds and Lenders do not lend you more money because you are using a Trust.

You are providing a personal guarantee as a Trustee or Director of the Company if a Corporate Trustee and as such are required to disclose any liability that you are guaranteeing.

Unfortunately it is a misconception that a lot of inexperienced brokers believe in yet learn the hard facts when they lodge the application.

Cheers

Yours in Finance

Certainly i would not be paying off $60,000 of your IP loans merely to uncross the securities and to be honest you dont need to reduce the debt by this amount or in fact any amount at all.

All you would need to is refinance the PPOR borrowing the required amount requested by Suncorp as separate Interest only loans pay them this to release the security.  No debt reduction yet still claiming interest on the total loan albeit split over 2 lenders.

Then as Terry mentioned take the opportunity of applying for the maximum LOC as possible when you refinance and using this to cover your deposits and future acqusition costs.

Your Broker should be able to give you some options in regards to lenders that dont have an issue with LOC's for future investment.

Cheers

Yours in Finance

No Linar you are bang on.

I am only aware of 3 lenders who will openly and knowingly accept an application in a HDT and not of these lenders are particularly competitive.

I remember clients who borrowed in such a structure with Seiza mortgages just prior to the GFC who when everyones else interest rate fell theirs went up. They had no choice as you could not refinance a HDT loan.

I would be double checking that Pre-approval.

Homeside Pre-approvals are not for 6 months these days in fact anything over 60 days old will require new documentation.

Cheers

Yours in Finance

Hi Mark

I think even at a relatively low lvr you will struggle to obtain finance especially given the inception of the new Credit Laws.

Responsible lending has outlawed access to Nodoc style loans and without clear evidence of your ability to repay (whether this comes from rent or part time income) it would be irresponsible for any lender / broker to take on such an application.

Cheers

Yours in Finance

We have probably settled around a dozen deals for clients buying in their SMSF and everyone has had some form of administration or legal hurdle.

Lenders are still not 100% sure of the legislation and each lenders legal dept interprets the SISA legislation differently.

Rule of thumb you will probably get around a 70% lvr with rates varying from around 7.25% +.

Personally i would not be paying an organisation 2% of the property deal when your Accountant will set up the structure and your mortgage broker can source the loan.

Cheers

Yours in Finance