All Topics / General Property / When getting Finance

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of Hux001Hux001
    Member
    @hux001
    Join Date: 2003
    Post Count: 108

    Just wanted to get an opinion from you experienced guys about the procedure when filling out the paperwork from the bank for finance, in particular the amount of information you disclose.

    For instance I may end up going to another bank for my next IP and don’t necessarily want to tell them about all my property investments as I have one property without a mortgage on it and don’t want them to use it as security. Do I not tell them about it and an outstanding loan for it and use the equity in other properties to gain the loan ??

    Your thoughts and experience please.

    Profile photo of CornelBassonCornelBasson
    Participant
    @cornelbasson
    Join Date: 2003
    Post Count: 62

    Mate I think they will find out anyway because off all the checks they do…these people can find anything out. And if you hide something from them and they find it out they might not give you the loan and see you as a risk…..just my thoughts

    Cornel

    Profile photo of Hux001Hux001
    Member
    @hux001
    Join Date: 2003
    Post Count: 108

    Thanks Cornel, I really wonder about that though, at the end of the day you tell them your assets and liabilities as you see fit. Not sure if there is any legal concerns and they will judge you on your debt. If you fail to disclose an asset is that really a problem to them?

    Profile photo of WAFWAF
    Member
    @waf
    Join Date: 2003
    Post Count: 61

    Hi,
    I would say don’t disclose, there is no requirement to disclose it if you have a deposit/equity and ability to repay. If you do disclose it and list it as an asset then should you default on your loan repayments they can in the worst case scenario begin to seize assets. If they don’t need to know don’t tell them.

    Cheers

    Profile photo of Hux001Hux001
    Member
    @hux001
    Join Date: 2003
    Post Count: 108

    Thanks WAF, I guess I really wondered if there is a legal requirement to disclose – particularly an asset that is unemcumbered and will allow me lots of equity at a later time to use for borrowings.

    Has anyone else been in this position?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Hi Hux

    Usually it is the other way around. ie people trying to hide loans not assets. I would say declare it, as it can only strengthen your case. The bank cannot take amortgage over this property without your consent (and signing loads of docs), so you have nothing to fear.

    You may also be getting rent from this porperty which you would not be able to show if you don’t declare ownership.

    The lenders is unlikley to find out you have this property if you don’t list it, but in the unlikely event that they do a title search under your name, it may come up. (also depends on how unusual your name is as DOBs are not recorded).

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Hux001,
    You say you do not have a mortgage on the property but you have an oustanding loan for it, With this in mind I would declare everything,
    Regards
    Steven

    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:0402483216
    Victoria

    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.