Get mortgage for property I own

Hi, we are in the process of buying an investment property for cash. Would like to get a loan, but not enough time. Is it possible getting a loan for a property after we bought it for cash. In a couple of month time after sales is finalized?

 

It is more difficult to do this (some lenders will do it) but depending on what the overall picture is it may also have tax implications.

How long have you got until settlement?

 

You can mortgage the property to secure a loan after you settle but what would you use the money for?
Interest would not be deductible against that property because you haven't borrowed to buy it.

 

Hi, thanks for info. We are in process of buying the place right now, with 8 week settlement. We have the cash, but not too much left after that. Would prefer getting an investor loan, but not sure if enough time. Our bank HSBC is currently very slow, and long delays.

 

Thanks for reply! We are using most of our available cash to buy this investment property. Would prefer if we could get an offset loan for 80% of property, and only use 20% of our available cash.

 

It sounds like you need to borrow to buy the property. have you go any family or friends etc who could lend you to buy? Once your loan settles you pay them back with the borrowed money.

or

Change banks and settle as per normal. 8 weeks is more than enough time

 

There are other lenders that are much faster and more competitive than HSBC. See a broker rather than trying to figure this out on your own.

 

As suggested above, use a different lender, mortgage brokers have access to 30+ lenders and they generally don't charge any fees for their services.
8 weeks is plenty of time, more than enough to get a loan sorted as long as you can service the debt.

 

I thought you were going to say it was settling on Friday, in which case still one lender which might be about to turn it around quick enough.

8 weeks.... we don't have HSBC on panel so don't know what is wrong with them but pretty much any lender can do it in that timeframe!

 

Getting the cash out might be a little hard but not achievable. Some lenders have caps on how much cash you can draw out.

And Terry is correct, once you take the cash back out. The deductibility of the loan is questionable depending on what it's used for.