I have applied for a no doc loan with Resimac (thru' Investors Direct) and the lenders have come back to me saying that I have to be registered for gst (because of the amount of exposure!!) Has anyone else come across this and can they explain why the lenders require this please. Also how will it affect us if we are registered for gst? The ABN is in my husband's name - he is registered as a sole trader. To explain what I have done, I first obtained a No Doc Line of Credit - using part of this LOC as the 30% deposit for the new property purchase and have gone back to Resimac for a new Lo Doc loan for the remaining 70%. Please help - I've only got 30 days to settle the purchase and don't want to delay the finance application
gst on new no doc loan?
- Thread starter Fourducks
- Start date
Sounds like they could be using Gemworth as their mortgage insurer as they have recently changed their policy and inisisting on GST registration irrespective of the LVR or loan amount.
I would get your Broker to switch it to another lender maybe one who uses one of the other mortgage insurers.
There is always an answer just a matter of finding it.
I would get your Broker to switch it to another lender maybe one who uses one of the other mortgage insurers.
There is always an answer just a matter of finding it.
Fourducks, what does your accountant say?
Potentially stupid question...
With no-doc loans, where you need to provide an ABN with 2 years, you are still able to take out the loan in your own (husband an wife) name aren't you?
Little bit concerned reading this thread that you might have to take it out in the name of your business?
We have an ABN for our partnership, but we barely make any income from the business (set it up just to do some consulting on the side) and the majority of our income comes from our 'day jobs'. My understanding is that for no-doc loan it doesn't matter how much money our business makes, (because we only have to make a declaration that we can afford the loan) so long as we have an ABN with 2 years on it. Can anyone verify if this is the case?
Cheers
Aaron
With no-doc loans, where you need to provide an ABN with 2 years, you are still able to take out the loan in your own (husband an wife) name aren't you?
Little bit concerned reading this thread that you might have to take it out in the name of your business?
We have an ABN for our partnership, but we barely make any income from the business (set it up just to do some consulting on the side) and the majority of our income comes from our 'day jobs'. My understanding is that for no-doc loan it doesn't matter how much money our business makes, (because we only have to make a declaration that we can afford the loan) so long as we have an ABN with 2 years on it. Can anyone verify if this is the case?
Cheers
Aaron
Unfortunately the mortgage insurer (Genworth in this case) has changed the rules and now insists on GST registration for all ABNs where the declared income is >= $75,000
GTS reg for No docs is not a requirement of either of the large lmi providers........So Resimac may be overlaying their own funding rules. This is not unusual with some lenders trust deeds being quite specific in terms of what they can and cant do
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Fourducks
if you go to http://www.business.gov.au/Business+Entry+Point/ you can type in your name/abn whatever and it will tell you at the bottom if you're registered for gst.
if you go to http://www.business.gov.au/Business+Entry+Point/ you can type in your name/abn whatever and it will tell you at the bottom if you're registered for gst.
