Generous lender for a flip?

Discussion in 'Loans & Mortgage Brokers' started by housechopper2, 2nd Dec, 2019.

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  1. housechopper2

    housechopper2 Well-Known Member

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    Situation: wife and I have a PPOR and IP, both with significant equity. Borrowing at max borrowing capacity through a big 4 bank. Wife is not currently working (was when we bought the properties).

    We found a house we would like to flip so need an IO loan < $1m with 90% LVR for a period of 12 months.

    We have enough cash in offsets to cover stamp duty, interest and renovation costs.

    Are there any lenders that would consider lending to us (or just in my name) that could consider our circumstances above for a loan? - I.e. outside traditional banks who wouldn’t lend due to HEM and APRA rules like assuming higher interest rates than are currently available?

    happy to pay a higher interest rate given these circumstances.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    no, it would be a breach of the NCCP Act
     
  3. housechopper2

    housechopper2 Well-Known Member

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    I can service the loan with savings.
     
  4. Richard Taylor

    Richard Taylor Well-Known Member

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    Savings are not sufficient evidence of income under NCCP.

    Of course if you purchased the property in a Pty Ltd entity it takes it out of NCCP.

    Cheers


    Richard
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    a 3rd tier lender would likely do the loan, subject to a few things

    ta

    rolf
     
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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You might spend it, still a breach I would think,
     
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Richard do you think a lender would consider a company acting as bare trustee? no bank would but a private type lender?
     
  8. Richard Taylor

    Richard Taylor Well-Known Member

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    Terry, Yes standard Private lender deal.

    1RM over the security property and 2RM over the other securities with interest & fees capitalised for the Term of the loan.

    Cheers


    Richard
     
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  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Oh really. No personal guarantees from the beneficiary?