Not all lenders will look at the security you are offering for a loan in the same way. Different lenders will offer varying loan to value ratios on a property (the loan amount expressed as a percentage of the value of a property) and on some properties you may find that a lender will not be willing to take the asset as security at all.
When you think about this it is quite logical… if you get into any trouble with servicing your loan and a sale of the security property is required in order to repay the loan, the lender needs to know that the security property can be sold quickly. The bank will also want to know that the value of that property is unlikely to fluctuate too much in value, which will obviously affect their level of risk.
However, what is a logical scenario to a lender is not always the answer you are looking for! This is where we step in. Our dedicated team of mortgage brokers is familiar with many different types of specialised securities. We also have relationships with various lenders and are therefore able to source the right loan offer in relation to on your requirements.
Some common types of specialised securities include:
- Company title property
- Multiple units on one title
- Studio apartments
- Vacant land
- Holiday rental property e.g., hotels, motels etc
- Retirement units
- Flood affected property
- Service stations, childcare centres, parking stations etc
Self Managed Superfund Loans
Many people with funds in superannuation have been enjoying the freedom of choosing how those funds are invested through self managed super funds. With the advent of the self managed superfund, managing your retirement funds is now fairly common as people shun large corporate public funds and opt to control their nest egg themselves.
There are significant rules and regulations in place to govern the management of your superannuation in order to protect your retirement savings. Until recently for instance it was not possible for a superfund to borrow funds for investment purposes. This ban has now been lifted and superfunds, including self managed superfunds, are able to borrow money to directly purchase real estate or shares in order to further the investment portfolio of the fund.
There are still some restrictions in place in structuring these transactions for example; specific entities need to be established in order to facilitate the borrowing/ownership of the assets. Plus there are complex issues involved in relation to stamp duty and capital gain tax and the loan products available. So it is important to speak to expert legal and accounting advisers as well as to mortgage brokers experienced in these sorts of scenarios, as we are.
The benefits of using your superannuation funds to invest with can be great. Wouldn’t you like to be paying off an investment property with the super payments your employer makes on your behalf?