How much info is enough?

[Marc]

Hi all,

We have approached a mortgage broker in NZ to get a loan for a town house we want to purchase as an IP. It has been tenanted for the last 4 years and is on the market for $88K. As an asset to use for security we have a bare section in the Bay of Islands (NZ) worth $110K (freehold). The mortgage broker wants us to declare all assets, liabilities in Australia to test DSR. We don’t want to use any assets in Australia as security and plan to put the NZ section and subsequent IP in a trust. If we declare all assets for the DSR test does that mean the lender automatically uses those assets as security or do they have to ask permission to do so?

Best Regards

Marc

 

[Simon]

Marc,

In my experience you they will only take security over any assets that you give permission to be securitised.

I should imagine it to be the same in NZ.

The land you describe should be more than adequate to secure the loan.

 

[Rolf Latham]

Hi Marc

of course Simon is right, and in any case if one could get a 1st charge mortgage and act on it easily in another country then you wouldnt be having to chase a local lender )

Ta

Rolf