There are very few that lend to 90% on a low doc basis, and they all have high exit fees.

If 80% would do, you could try BankWest. The last time I looked they only charged about $300. You will be up for LMI though.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Yes you can claim the interest. You probably should have a written loan agreement in case of audit.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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I have been meaning to look into testamentary trusts too for a while, but never get around to it.

They are a very good method of willing assets away. There are various tax advantages such as Children being able to receive funds and pay adult tax rates, instead of the penalty rates for kids (up to 67%).

Also from an asset protection point of view they are good. Say one of your children goes bankrupt, you die and they get your assets – it may all be seized by their creditors. However if your assets went to the trust, then the trustee could avoid distributing to the son until he is out of bankruptcy.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Since its your dad, why not start simple and just buy a property jointly. However, you should agree at the begining on who does what, and how much each of you will put in etc. Look at the what ifs – ie if either of you wants out, what do you do, sell, buy out the other partner, bring in a new partner etc. It is best to write these things down.

Terryw
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Mortgage Broker
North Sydney
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Yes. but get legal advice. Each state differs in their rules. In some states the entity must be set up before you sign the contract, or you must pay stamp duty twice – this is the case in QLD I think.

Terryw
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Mortgage Broker
North Sydney
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Tell her to be careful and to watch out for high interest rates and high charges. Most brokers would be able to set up something similar for free with possibly a lower interest rate. This sounds like it is a line of credit type loan, and the rates for these start at around 6.72% (thats after the 0.25% rise), depending on loan size.

Terryw
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Mortgage Broker
North Sydney
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You should probably look a getting one property in your name, see how you go and then if you intend to keep going, set up a trust at that stage.

Trusts are cheap to setup. from $137!

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Just be careful, these are usually hard to finance and hard to sell and can have management problems.

Terryw
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North Sydney
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Trusts cannot distribute losses. Even Hybrids can’t do this. Also none of the above expenses would be claimable against your own income. The trust would be able to claim them against its income. I don’t know about travelling costs though.

With a hyrbid, only the interest expenses would possibly be claimable against your peronal income.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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I have done two refinances. The first went through ok, with the lender and mortgage insurer treating it as a normal refinance. A few months later I tried again, with the same lender, but the mortgage insurer (PMI) had changed their opinion on wraps and would not treat it as a refinance. They would only lend based on contract – depsite around 2 years passing since they signed it and values having increase dramatically. In the end, i couldn’t get them finance. They ended up going to another broker who aparently did up a dummy contract at a higher amount that got them through.

This was about 2 years ago and things may have changed.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]