Hi all,… long-time lurker, first post, and this feels like the only place in Australia where people will actually know what I’m talking about.
In 2022 we bought a house in regional NSW on a vendor finance instalment contract,… classic wrap, price marked up ~20% over the vendor’s buy price, rate 2% over an indicator, weekly payments, vendor keeps title until completion. Purchaser is a company as trustee for a family trust, protected by caveat.
Four years in, we’re ready to get out. I have the payout figure in writing (~$266k), no early completion fees, and the numbers stack,… the property’s worth comfortably more than the payout. The problem is finding anyone who’s done the exit side. Every broker I contact either goes quiet or tells me straight they’ve never seen an instalment contract. The banks have also tightened hard on company/trust borrowers since late 2025, which doesn’t help.
So my question is for anyone who’s been the buyer in a wrap and refinanced out, or the vendor whose buyer refinanced out:
1. Which broker did the deal? Names appreciated,… happy to take them by DM if you’d rather not post.
2. Which lender funded it, and did they treat it as a purchase or a refinance?
3. Any traps at settlement I should know about,… caveat handling, simultaneous transfer, duty?I know wraps get debated on here,… not looking for a debate on the model, just the practical exit. The contract did what it said; I just want to finish it and hold the place with a normal mortgage.
Thanks in advance,… happy to report back with how it goes so the next person searching this has an answer.
Good morning Ruby,
My name is Chris, and I assist with a range of finance-related queries for property investing.
I do a lot of company and trust deals, and these options are definitely still available. While they have become more expensive in the past 12 months, this generally shouldn’t prevent the transfer from being completed, particularly if the property is going to remain owned by a company or trust.
From what you’ve described, it sounds as though this may be treated as a purchase, unless there is already an ownership agreement in place within the company involving all parties and the intention is to remove or change directors/shareholders.
I’d need a little more information about the current structure and circumstances to clarify the situation and confirm what options may be available.
If you’d like to discuss it further, feel free to contact me at [email protected] or on 0477 212 840.
I look forward to hearing from you and hopefully helping you work through the options.
Christopher Berry | Find A Better Rate Home Loans
https://findabetterrate.com.au
Email Me | Phone MeTaking the Hard Work of your home loan
Howdy,
It seems like you bought a house using VF, and now wish to refinance it.
If that is correct, then it is quite easy.
Step 1: Find a financier. This should be simple enough, provided you qualify for a standard residential loan. You will need to show serviceability, and have a deposit. However, as it is a residential loan, you may qualify for a high LVR. Have a chat with Chris.
Step 2: Once you have pre-approval, head to a lawyer and request they act for you in the conveyancing. You will need to provide them with your original VF contract, and they will contact the vendor for a pay out number. They will then handle the conveyancing work for you so that title can be transferred into your own name.
Just a side issue: be sure to read that original contract to become familiar with the process and fees (if any) associated with the buy-out.
All the best,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks Steve,… hearing “it’s quite easy” from the bloke who wrote the book is exactly the reassurance I was after. That’s the sequence I’m running: financier first (a broker’s already got a lender considering it as a purchase), then the lawyer for the conveyancing and payout. I’ve read the contract cover to cover,… no early completion fees, thankfully. Will report back here once it settles so the next buyer searching this has an answer. Cheers, Ruby
Thanks Chris,… I’ll email you directly.
:-)
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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