Private funding for deposits and costs

Found this statement interesting:

Terry mentioned very clearly:

My understanding is similar. My bet is that most borrowers will find the same if they take the time to read their loan agreement. The fact that lenders don't enforce (or even notice!) it seems like a loophole to me, not a policy but I'm not a lawyer so my opinion may be rubbish

 

On this thread looking for answers as to whether lodging a second mortgage or caveat in Queensland will notify the bank (who has the first mortgage).

I've read in various threads that banks wouldn't know unless they do a title search? But also read that the bank will be notified (as a registered interest) once the caveat/2nd mortgage is registered.

Help! What's the general practice/experience?

@Terry_w

 

I don't know the laws in wld on this but would generally need the permission of prior mortgagees to register a subsequent mortgage.

 

Just wondering how easy it is to get private finance and how it works? I've put in an offer on a property that would require a loan with liberty due to loan to income. However the property has been deemed too risky by them due to an unapproved dwelling on the property. So if I were to take private lending approval to settlement, keep the private lending for a couple of weeks, demolish the problematic dwelling immediately at settlement (IE the day after settlement) and refinance with another lender as soon as dwelling is demolished, would this be a good way to use private lending?

If so, what sort of rates would I be looking at please?

 

In Qld no requirement to obtain consent of the first mortgagee however do nderstand that a Caveat falls off after 90 days in Qld and can only be renewed by making an application to Court.

Cheers


Richard

 

Hey Richard, thanks for the answer! Would you know if the first mortgagee be automatically notified or alerted by the new caveat? is the first mortgagee considered a registered interest?

 

Thanks Richard. It is NSW. So would the private lender put a caveat on the property, which would need to be removed at the time of refinancing? Is it harder to obtain mainstream lending if private lender is listed as a caveat and if so how do you work around this?
Thanks

 

Yes the Caveat would need to be removed at the time of refinancing.

Yes the first mortgagee would be notified of the registration of any subsequent charge.

Cheers


Richard

 

A registered mortgage is one recorded on title. It is a registered interest.

An unregistered mortgage and an equitable mortgage and is not a registered interest but an interest in equity