Refinance for my mother

[shezian]

HI
My mum, is 65 and is trying to refinance with another bank, as her current bank, (national Australia bank), it taking out extra monthly repayments and also because she would like to have each house separated from each other.
She has an income of $750 per week before tax and she is 65 and has 5 properties, with about $200,000 in her bank which is offsetting her loans.
She has a company as she used to own a business and no longer does, but was told as she isn't paying any GST that no bank will give her a loan, and that the only loan she will get will be a low doc loan at an interest rate of 6%, which is more than what she is paying now. Is this true, do you think she can be refinanced at all going on just her income? Her debt is 1.8 million and l would say she has roughly about $400,000 dollars in equity. I am just guessing here as the properties haven't been properly valued.

Thanks Sue

 

[tobe]

A mixture of selling and refinancing the remainder might get her a better cashflow position, even if she were to refinance to a higher rate than she is on now with the NAB.

There are a few low doc providers who dont need you to be registered for GST, especially for multiple investment property owners. Their interest rates are under 6%.

Its a fairly tricky scenario so its best she seek specific advice.

 

[Mick C]

Refinance is fine, some bank will restrict the loan term to around 20 years or less due to her age...but if her financials are strong might be able to get 30 years which will improve cash flow- have done a 30 years loan for a >70 year old ( strong financial with a solid exit strategy).

The only concern i can see is serviceability, with only $700 per week to play with i don't know if she will be able to service the loan or not....Best if she or you speak to a broker or banker on her behalf.


Cheers

 

[Terry_w]

I spoke to a person with a similar situation recently.

The only way I could see this being done was if mum got a well paying job or if someone else went on title for a small amount and then using both persons to qualify for the loan

The $750 per is from rent isn't it?

That is a large amount to refinance and lenders are restricted to who they can lend to because of legislation

 

[Rolf Latham]

Exit strategy is key, for

• NCCP compliance
  
• Best Interest for the client
  
• Best interest for the lender.

Age isnt an issue per se.

My oldest client was 84 with a 30 year mortgage...........

ta
rolf

 

[shezian]

I spoke to a person with a similar situation recently.

The only way I could see this being done was if mum got a well paying job or if someone else went on title for a small amount and then using both persons to qualify for the loan

The $750 per is from rent isn't it?

That is a large amount to refinance and lenders are restricted to who they can lend to because of legislation

Hi Terry,
Yes that was my mum. It it okay if she rings you again to talk to you again?

 

[shezian]

Hi Terry,
Yes that was my mum. It it okay if she rings you again to talk to you again?

Sorry, no its not from rent, its an income from a job.

 

[shezian]

Exit strategy is key, for

• NCCP compliance
  
• Best Interest for the client
  
• Best interest for the lender.

Age isnt an issue per se.

My oldest client was 84 with a 30 year mortgage...........

ta
rolf

Thanks will get my mum to call you.

 

[geoffw]

I read the title of the thread and thought that you were requiring finance to buy your mother.

 

[shezian]

I read the title of the thread and thought that you were requiring finance to buy your mother.

Sorry, if l was misunderstood. She asked me to find some answers for her.

 

[Terry_w]

Hi Terry,
Yes that was my mum. It it okay if she rings you again to talk to you again?

No, there is nothing i can do.

 

[HLE]

Hi Shezian,

1. There are a few lenders who can accept past (no more than 24 months old) business tax notice assessment and tax returns OR if the statement is older than 24 month, then that lender can accept Internal management accounts supported by Business Activity Statement

2. There are a few lenders who can provide low doc loan with GST registered with a competitive interest rate.

3. Due do the applicant's age, the bank will set the loan term to Max at 20 years. If applicant looks for 30 years loan term, then she needs to demonstrate a exit strategy.