refi tax debt

[tobe]

Hello Broker minds. Does anyone know a lender who isnt a non conformer who can refinance tax debt?

80% lend against multiple unencumbered residential securities. 1.2 loan amount.

 

[Aaron_C]

How much tax debt? Why not get cash out?

 

[Rolf Latham]

citi ? amp maybe

ta
rolf

 

[Peter_Tersteeg]

I think Liberty will do it, they're on Choices panel.

AMP don't have limits on their cash out policy, but probably wouldn't like the purpose. The amount could make them pause as well. Same goes for ME Bank.

I know of a couple of other mortgage managers, but they might be outside of your ACL panel. AFM comes to mind.

 

[jonmardell]

Hello Broker minds. Does anyone know a lender who isnt a non conformer who can refinance tax debt?

80% lend against multiple unencumbered residential securities. 1.2 loan amount.

you would have to look at cash out in this case. AMP would be one of the better options.

 

[tobe]

AFM no, or only their non conformers. This isnt a cash out question, its a purpose question. Obviously during assessment credit is going to pick up on the tax debt.

Citi was my thought too. Now to try and get hold of the BDM....

 

[jonmardell]

AFM no, or only their non conformers. This isnt a cash out question, its a purpose question. Obviously during assessment credit is going to pick up on the tax debt.

Citi was my thought too. Now to try and get hold of the BDM....

Citi asks too many questions IMO, what type of tax debt is it? I think citi only does capital gains tax debt and not other tax debt racked up over time. With amp you can disclose the debt but the purpose can be future investment.

 

[Aaron_C]

tobe sounds like it's not as complicated as you make it out to be? Obviously it depends on the level of cash out and level of tax debt but this should be pretty easy. Not everyone asks for ATO running balance but I know a few do these days.

 

[Mick C]

Liberty is def worth a shot, AOT pay out are normally not an issue.

 

[tobe]

Many thanks. ATO debt is 1.2, loan amount 1.2, against resi security.

I havent been able to find a conforming lender to accept financing tax debt as an acceptable purpose. Im sure there might be a way round it for future possible investment cashout, however its not something Id consider.

Non conformers came back at fairly reasonable rates (compared to the ATO default rate lol), but the clients decided to use solicitor funds, which are no doubt more exy.

 

[jonmardell]

Many thanks. ATO debt is 1.2, loan amount 1.2, against resi security.

I havent been able to find a conforming lender to accept financing tax debt as an acceptable purpose. Im sure there might be a way round it for future possible investment cashout, however its not something Id consider.

Non conformers came back at fairly reasonable rates (compared to the ATO default rate lol), but the clients decided to use solicitor funds, which are no doubt more exy.

hmm sorry you lost the deal. Why would they have gone solicitor funds if you and get them rates at 5%?

 

[tobe]

non conforming rates, circa 7% plus 1.25% risk fee

 

[Mick C]

Many thanks. ATO debt is 1.2, loan amount 1.2, against resi security.

I havent been able to find a conforming lender to accept financing tax debt as an acceptable purpose. Im sure there might be a way round it for future possible investment cashout, however its not something Id consider.

Non conformers came back at fairly reasonable rates (compared to the ATO default rate lol), but the clients decided to use solicitor funds, which are no doubt more exy.

OHH wow!!! ok that's a sticky one lol....

1.2M in ATO...i thought it was refinance + cash out of $100-150k max ATO.
Gee this is def a non-conforming loan type deal.

Good luck

 

[Mick C]

non conforming rates, circa 7% plus 1.25% risk fee

Still cheaper than a solicitors fund....also what will happen in 12 month time...

THey should have just taken your deal of the non-conforming, doesn't make sense to go on a short term solicitors fund.

 

[Aaron_C]

Ok wow that's a massive one........they should've gone with your option. Oh well. Clients in these situations always leave out one thing.

 

[tobe]

not so sure it would have been that sticky. Once refinanced and tax debt cleared a conforming lender could pick it up. thats how I sold it to him anyway.

His concern was the 1.25% upfront, I guess solicitor funds at 9% for 3 months (then rolling into conforming rates at 5%) is better than 7% for six months plus 1.25% upfront.

Onwards and upwards....

 

[Aaron_C]

Having a large tax debt like that means the client is withholding information. That's what always happens. Maybe a massive default, bad cashflow etc.