Best path to proceed

Sorry Brett bit confused, is the new place with the backyard to subdivide or your PPOR?

One thing you need to remember is that banks are not allowed to have a serviceability guarantor anymore (since the new NCCP rules I think). So to use her income for serviceability you will have to have the loan and the new property in joint names.

Cheers,
Luke

Cashbond – pretty much a standard Bond…but there are many different types.-

Learnings- Yes cashbond are fine…but it depends which type of cashbond you hold and is it an Australian cashbond ?
Just a few points;

1. ” upto 20k private finance “?? so are you getting a loan for a private fund for the subdivision??? – why dont you just borrow it from the bank your wanting to apply this 2nd IP

2. Your situation sounds a bit complex to solve correctly over a forum- you have a lot of “variables” and “unknown” happening.

3. Your back up plan will only work if this is an ACTIVE ABN for 2 years + you have a accountants letter as declaration ( highly unlikely any accountant will supply this letter) OR an Business active statement from the ATO ( unlikely) OR 6 month trading statements ( Unlikely)

I guess what im trying to get at is …your best to go for a full doc PAYG application because on your bank statements the lender will see regular “income” from your work and this will cause alarm bells…*ding ding ding * game over buddy.

4. GF – no chance for serviceability guarantor…can only be a co-borrower.

5. ” duck and weave between lenders to get it accepted. ” – Your playing a dangerous game, a lot of lenders will automatically shut you out if the purpose is for construction.

My advice as an broker- be upfront…yes we can be creative in the way we structure your loan, choose your lender, choose the product..but at the end of the day if you have to resort of serviceability guarantor, Private funds, cashbond and Low-doc self employed JUST to get this loan over the line….is it really worth it???

So i say, sit down with your broker and accountant and work something out- you never know it’s probably not as bad as you think.
I clearly remember a client who came to us 15 month ago and requested a private non-conforming lender outright ( rate of 14% !!!!) because she thought her situation was to complex for the banks and she was close to settlement.. We end up placing the loan to CBA and it was approved within 2 weeks.

You never know if you never ask. Guessing and presuming is a dangerous game and can cost your thousands.

Regards
Michael