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Borrowing in company names

Discussion in 'Property Finance' started by Blacky, 9th Apr, 2016.

  1. Blacky

    Blacky Well-Known Member

    Joined:
    25th Jun, 2015
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    Location:
    Bali
    I have a current loan split in two.
    Loan a) used to purchase the property it is secured by (in my name).
    Loan b) (also in my name) used to on lend to ABC pty ltd (100% shareholding by me).

    My accountant recommended me to see if I can refinance Loan B) directly into ABC Pty Ltd name. Effectively, there would be a loan to Abc pty ltd - purpose of funds - repay loan to Mr Blacky. Net effect on debt/LVR - $nil
    I approached my bank manager, who put me onto the business lender.

    I understand they need to do a full application, however, they also will not offer me a 'resi' loan, only a business loan.

    In my past experience I have always been able to access residential loan facilities (Home loans) in company entities.

    Is this case unique, as there is going to be two borrowers, secured by the one property? effectively meaning ABC pty ltd can only provide a second mortgage (well, really it is me providing the second mortgage with guarantee to ABC pty ltd).
    Or is it just my bank (which bank?) being difficult?

    Blacky
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    It could be done as residential if the property is residential.
    Are you with Westpac?

    The company doesn't own the property so it cannot give a mortgage. You have to allow the company to use your property with you providing the mortgage and a guarantee tot he lender.
     
  3. Blacky

    Blacky Well-Known Member

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  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    why do you want to change things around.

    St g would probably be the easiest lender for this sort of thing.
     
  5. imbi3

    imbi3 Well-Known Member

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    It depends on what the Loan b) was originally used for. If it was used to purchase a residential property, then you should be able to do it as resi loan. One of the lenders that would do this is ANZ