Investment mortgage for company

Discussion in 'Loans & Mortgage Brokers' started by captain starlight, 10th May, 2020.

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  1. captain starlight

    captain starlight Active Member

    Joined:
    16th Dec, 2018
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    canberra
    Hi all,

    I’m not familiar as to how banks, or mortgage brokers treat a company when that company is applying for a mortgage for an investment property. A couple of initial questions:

    firstly, how much deposit should a company have when applying for an investment loan? Is it the same as a private individual or more?

    secondly, what if it is a new company with no trading history? Do the banks look at the history of the Directors?

    finally, what if the company doesn’t have any major cashflow, ie incoming? Putting this into perspective, a new company wants to buy an investment property. The directors have good personal cashflow, but the actual company doesn’t. Do the directors go guarantors in a situation like this?

    thanks
     
  2. Terry_w

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

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    Australia wide
    Companies can borrow just like persons can and can mortgage property they own. They can get 90% loans or even 95%.

    Lenders will look at the income/liabilities of the guarantors which would be all directors.

    If the company is trading they may not want to lend - and the directors/shareholders should seek legal advice on whether to cause the company to borrow or not. Also seek advice on funding the deposit and cash flow.
     
    melbourne171 likes this.
  3. Lindsay_W

    Lindsay_W Well-Known Member

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    QLD
    Best speak to a good Mortgage Broker prior to proceeding
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Simple but not obvious, Second LWs recommendation

    ta
    rolf