Refinance 50% LVR

Discussion in 'Property Finance' started by Abacus, 1st Nov, 2018.

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  1. Abacus

    Abacus New Member

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    Hi all,

    I've got a property held in a company that I've got to get refinanced in the next 8 weeks. LVR is low, probably 50% or possibly less. Sydney eastern suburbs, freehold, estimated value in excess of a $3m. Big 4 have knocked me back due to serviceability because I am self employed with a very lumpy income. OK with getting a 12 month or 24 month term.

    Anyone have advice for where I can get finance across the line quickly with these restraints?

    Thanks
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Liberty, latrobe, pepper, or if you are needing monye for a short term but FAST, private money is possibly better

    ta

    rolf
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I agree - please see a broker who can look at your big picture, as there are likely some options for you. 8 weeks should be plenty of time if you move fast and your situation isn't crazy complicated.

    Which big 4 - all of them?
     
  4. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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    Could the rent alone more than meet the repayments?
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    One of the girls/guys above could assist
     
  6. Abacus

    Abacus New Member

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    It's a little complex but it's our primary place of residence and owned in a company.

    How do you access private capital?
     
  7. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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    Hope you are paying rent?

    Richard Taylor of the forum runs a private lending business - not sure of his username.
     
  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    There's quite a few private funders that would likely fund this with no problems and very few questions.

    But you really want to have a very solid exit strategy in a year or two, otherwise it could end quite badly.

    That would be a strategy of last resort IMO. See a broker to explore options.
     
    Last edited: 2nd Nov, 2018
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  9. George Poullos

    George Poullos Finance Strategist Business Member

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    Private funding has it's place, but not sure if this is what you want. Private funds tend to come at significant cost.

    You said you've 'got to get the property refinanced in the next 8 weeks'. Why is that? Has the rate crept up in recent times? Or has the interest only period expired and now the principle & interest repayment is causing you cash flow headaches? Or is there another reason why you must refinance?
     
  10. Lindsay_W

    Lindsay_W Well-Known Member

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    IF needed - Private Lending can be provided for 12% per annum (1% per month) for 24 months with option to extend the term, approval within 24 hours is possible with funding available in 48 hours.
    Must be 1st mortgage over security.
    Interest can be pre-paid or capitalised for the life of the loan.
    Although I agree with what others have said above, it's worth speaking to a broker to see if there are other options available to you first.
     
  11. jazzsidana

    jazzsidana Mortgage Brokers - Investment Savvy Business Member

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    1st tier. If not, 2nd tier. If not, 3rd tier..

    Last resort - private lending!..

    Best to speak to one of the brokers!!..
     
  12. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    It sounds like the bank could see your business bank account? If your tax returns support the loan then lumpiness of your income shouldn't matter. That would be my first step. If doesn't service then you may need to look at the 3rd tier and private options.