Mortgage insurance has a huge impact on low doc loans as virtually all mainstream Low Doc loans are mortgage insured. With some the lenders charge the clients the fee, while with others they incorporate the fee into their rate and/or exit fees.

This means that you will have to pass the LMI criteria as well as the lenders criteria. Postcodes may be restricted, total loan amounts, overall exposure levels, previous disclosed incomes etc.

There is 2 main LMI companies and 2 or 3 other smaller ones. So often changing lenders will not help you, as they will be using the same LMI company.

There are a small number of loans that do not have LMI at all for Low Docs. eg. ANZ, Adelaide, ING, and some others.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

It would not be possible to raise finance the usual way. Usually the person on the title has to be the one on the loan. You may be able to find a private lender willig to take the risk, but the risk for them would be very large ~ it would basically be an unsecured loan.

In this situation maybe you could talk the owner into taking all risk and you take a consultant`s fee.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

I know of a 85% Asset lend, 3-12months, rates from 12%, fees are rather high though. Best avoided it possible.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Colin has covered it weill, but i would suggest you get some legal advice. You shouldn’t be signing a contract without having it passed by a solicitor – you could be locked into a purchase you may regret.

As for the and/or nominee it is always good to use, but just be aware you may still be up for stamp duty in Vic if you do not have a written agreement with your nominee dated before you sign the contract. eg. you sign and/or nominee, then X comes along and you nominate him. You will have to pay stamp duty on your purchase and so will X – unless you had a prior agreement.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

try http://www.gatherumgoss.com
Author of Trust magic

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

No, loans and credit cards are not recorded as being paid on the credit file. Only applications and defaults etc are recorded.

But if you have cancelled a credit card or paid a loan off, sometimes the lenders may not beleive you, so you should keep records as proof.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Yep. you will pay tax. If you have held the property longer than 12months then you may get a 50% reduction on the CG. If less, then no deduction.

The relevant date is neither of those, but the date of the unconditional contract.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Yes you could, but the lender may see that you were a shareholder or director when they did the credit check. If they do then this won`t really solve the problem as they might require further proof.

A better option would be to have a company controled by a friend or a relative. Even just leasing to a friend or a relative may be enough.

AS an aside, this is one way to divert money into a trust, if you just purchased it in your own name to begin with. If you are geting a good income, you could lease your property at a low rate to your trust which then on leases it at a higher rate, making the profit. It can then be distributed to a person on a low tax bracket.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Dom, if you borrow from a LOC to pay interest on your IP loan, this would free up money that you would otherwise use to pay this – which can then be placed into a 100% offset account linked to your home loan.

You should be doing the same with expenses such as rates. Dont pay these with cash, but put the cash in the offset and borrow from the loc to pay the bills.

In the end it will increase your deductions.

If all your properties are in a trust already, you could sell to a new trust – maybe a hybrid DT. But you will have to weight up the costs. Banks, ATO etc look at this as a sale and purchase.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

I haven’t heard of a tax ruling, but have heard that some idividuals have received private rulings relating to paying interest with interest. Check the somersoft forum and the invested.com.au forums.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.