What the broker is suggesting is cross collateralisation.I am located in Sydney, but don't take on new clients anymore. I can refer you to someone if you send me your email.

fWord wrote:

Terryw wrote:
When you use the equity in property A just think of it as borrowing from property A to fund property B.

Thanks for the response. However in this case I understand that I have to pay interest as with any other loan. As such, is there any real advantage to drawing out equity instead of just borrowing from the bank?…[Read more]

21 Jan email from bankwest:No BAS Statements Required for Low Doc Home Loan Non-LMI Deals (LVR <=60%) require customers to have registered ABN for a minimum of 1 year.   LMI deals (LVR 60%-80%) require the ABN registration for a minimum of 2 years; Customers' claiming income of >$75k will be required to have their GST registration in place…[Read more]

Last i looked Suncorp will still do 80% Low Docs without BAS. Others out there too.

A no doc loan is one in which you do not need to prove your income or declare an income.Loans don't unsecure themselves, unfortunately, you will need to apply to your lender to vary their security. If the loan is less than 80% of the value of the remaining property securing the loan is usually possible.

Its the same as becoming a lawyer. You still need 2 years acting under supervision before you can go out on your own.

If you are using the PPOR as security for the commercial you would have to reduce the LOC by this amount. Longer term I would look at getting the commercial property to secure itself.

Tightening is good.

Carlito wrote:
Hi Terryw,What would you do in my situation? Am I correct in saying that the most i can get for a LOC is $246,000?I would like to borrow about 350,000 for my next IP but can I do this without CC my loans? LOC is only at $246,000 (if that's correct)I just want my loan structure correct going forward. Carlito

I  would try to get…[Read more]

Yeah, BW don't like trusts. but if the trust has nothing to do with the purchase it shouldn't matter. I can't see why it would be rejected on this basis.Maybe try ringing up their hotline and see how you go – ie bypass this person.

Your picking a bad time to start broking! Clients are down and so are commissions while regulation is increasing.Most aggregators require MFAA membership which in turn requires 2 years history in the industry.

best way would be for you to withdraw funds or borrow more and on lend them to mum. That makes things easier and safer as you don't need to use your property as security for her loan – which a bank is unlikely to do anyway.

Banker wrote:
Cross collaterlising relates to security rather than debt servicing. If the debt levels are the same either way you shouldn't need to x collateralise to make the deal work. When the banks / brokers lodge the deal on their computer the system will automatically link the security. If they are lodged seperatly You get no cross…[Read more]

Thats my understanding too.They require you to prove you have been self employed for 2 years to qualify for a Low Doc. Self employment can be as sole trander, thru a company or thru a trust. You prove the length of self employment by the date of registration of the ABN. You will also need GST registration if your income is $75k pa +.Who is the…[Read more]

If think some are getting frustrated that others would even consider that this sort of thing is genuine.It just doesn't make sense.

Actually there are not many 95% loans left, that is why BW force you onto the high rate. You probably can't fix your loan at this LVR as you can only take certain loan products – but maybe you can get in and then change products. I am not up to date with BW at the moment.

Thats a good loan, but if you want to pay interest in advance you will need to fix the loan for 1 year. You can't pay interest in advance on a standard loan like that.

Is subdivision possible before the new houses are constructed? I thought that maybe you would have to build first before the new title is issued.

SMSFs are good, but may not work for well for what you are after. The equity in a property in a SMSF will not be accessible for further investing, this is probably the major draw back.With a discretionary trust, there are some drawbacks, but it will make things so much more flexible than buying as tenants in common. Worth looking into.

You could get an option on it and sell the iption to someone else. But extra stamp duty on options in Vic now.