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.
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
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?
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
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?
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://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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
StevenMortgage Broker
[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
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