As a guide, these non conforming lenders have a credit matrix whereby they rate the applicant in terms of risk. Each lender is different, but most have about 5 ratings. Each rating has a different interest rate to reflect the risk. Low Docs are also a bit higher in interest rates, and rates also rise as you go higher with the LVR. If someone is a recent bankrupt of less than one one year, they may save about 0.60% if they waited until after 12 months.

Terryw
Discover Home Loans
North Sydney
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One of my wrappees rented out the property – without my permission. I didn’t know until after they settled on it. Had no problems at all.

Terryw
Discover Home Loans
North Sydney
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No. But some banks do take into account negative gearing benefits and depreciation – eg. Macquaire Bank.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Misty

Sorry, I can’t really understand your questions fully, but…

A trust is not a legal entity, so cannot be sued. It is the trustee that is the one that can be sued. Maybe even directors of the trustee company can be sued too, if they have made bad decisions.

If the trust property is used as security, and payments aren’t made then the property can be taken by the mortgagor.

If the trustee or director of the trustee company gives a personal guarrantee for loans or rent etc, then they will be personally liable and their non trust assets will be at risk. etc

ps. I am not a lawyer.

Terryw
Discover Home Loans
North Sydney
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It is pretty hard to convince a valuer that the property has gone up so quickly. That will probably be the hardest part.

You will not be able to access the equity before settlement, but with some banks you could apply for a loan increase immediately after settlement, and get the place revalued and borrow up to 90% of this new value. But there would be extra fees invloved such as loan variation fees, and maybe valuation, LMI, Stamp duty on the increased protion of the loan etc.

Terryw
Discover Home Loans
North Sydney
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Hi

13% sounds very high!

There are about 5 main lenders (non-conforming) that could help you. eg. Discharged bankrupts (more than 1 year) could get up to 90% at 9.99% with Bluestone. but having only recently started your business will make it harder. With Bluestone, if you have less than 12 months trading history, the LVR would be a max of 75% with an interest rate of 9.29%.

Terryw
Discover Home Loans
North Sydney
[email protected]

Acey

Unfortunately most good low doc loans require that the applicant be self employed for more than 2 years. Mot want an ABN or company registered longer than 2 years as proof.

Terryw
Discover Home Loans
North Sydney
[email protected]

I start with getting 95% loans with the LMI added on top, trying to use as little cash as posisble because I didn’t have much to spare. However, It is good to get 80% loans if you have hte equity.

Terryw
Discover Home Loans
North Sydney
[email protected]

I have one there.

Terryw
Discover Home Loans
North Sydney
[email protected]

I have seen a lot of clients recently where the values have come in less than the contract price a few years earlier.

Terryw
Discover Home Loans
North Sydney
[email protected]