I thought it was illegal to have your loan higher than that of the new buyers (so it isn’t illegal to use IO loans, sorry if I confused the issue here).
Using I.O. loans are more difficult because you have to work out exactly when that event occurs (the event being you owe more than the wrappe).
That is MY knowledge of it though – And could be COMPLETELY wrong and incorrect. But considering this is your first wrap, it’s best to keep it simple as possible. Perhaps Felicity (wrapper extraordinaire – Your reputation proceeds you!) could help us out…
Rgds.
Lucifer_auLucifer
As I said earlier, this is a very grey area, as this type of loan facility didn’t exist when the Vic legislation was drawn up (and I don’t have a clue about other states!).
I agree, keep it simple, your loan should always be lower than the wrap buyer’s.Keep smiling
Felicity
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