Page 2 - Loan Structure Solutions

Contents

Introduction…………………………...…………..……1

Part A: The basic’s………………………….…………..2

1) What’s so costly about the wrong loan structure? ……..………2
2) Cross-securitisation – that’s a big word!……………...…………4
3) Case study: a worked example …………………….……………5
4) Funding deposits………………………………………..…………9
Part B: Advanced Considerations…………..……..…10

5) Multiple lenders …………………………………………..………10
6) Unexpected changes are exactly that... unexpected ……...…11
7) Where repayments come from? ……………………..…………11
8) Managing borrowing capacity ……………………..……………12
9) Keep your LVR as close to 80%…………..……………………12
10) Interest only or principal & interest repayments?… …..……13
11) Structure and mortgage insurance……………………………14

Part C: Structuring through entities ………………...14

12) Discretionary trusts – don’t compromise asset protection …15
13) Offset accounts (almost a must)… ………………...…………16
14) SMSF Borrowing ………………………………………….……16
15) Don’t agree to registered mortgage debentures ……………18
16) Personal guarantees……………………………………………18
17) Hybrid & Unit Trust………………………………..……………19
18) Not all lenders are going to be good………………….………19

The final Word…………………………………...……20

Contact us……….……………………………….……21