Learning the lending world from a perspective of a mortgage broker. Expert mortgage broker was invited ponce again to our podcast to discuss and explore trust lending but this time the details came from a mortgage broker. Our experts discussed the pros and cons of trust lending as well as the paperwork and cost attached to it. Banks are major institutions that can influence the lending environment through their limitations and restrictions, therefore, it is immensely important to understand the structures of trust in terms of asset protection, lending advantages and management of land tax.
Banks are narrowing the gap between rates for owner-occupied and investment lending, making it a good time for investors to review their rates. There are signs that banks are easing their credit policies, such as offering higher loan-to-value ratios and shorter financial history requirements for self-employed borrowers.
The second part of this episode comprises of the differences between standalone loans and cross-collateralized loans. Standalone loans are generally preferred over cross-collateralized loans due to the risks and limitations of the latter. Yet, both are equally important in the world of lending trusts.
Episode Highlights:
00:00 Welcome to Help Me Buy Property Podcast
05:23 Benefits of Using Trusts in Lending
09:49 Standalone Loans vs Cross-Collateralized Loans
14:14 The Bank's Perspective on Cross-Collateralization
21:46 Final Thoughts
Chris Raymond is the principal finance broker at Unconditional Finance, an Australian-based award-winning mortgage broking company. With an enthusiastic commitment to his client’s success, he effectively tailors loans to suit their needs, specializing in property investment, residential, commercial, and asset finance. Driven by the purpose of educating his clients to make informed decisions, he has successfully catered to helping people achieve their financial goals.
Chris Raymond can be reached out at: https://www.unconditionalfinance.com.au/
Resources:
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Keep smiling, be kind, and continue investing. Peace out!
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