Services that we offer for borrowers include:
Advice on Loan Agreements
Even if the lender does not require a written agreement, it is still in your interests to insist on one. This is by far the best way of minimising the possibility for a dispute to arise later. Generally, the lender will prepare the loan agreement (although we can prepare it on the borrower’s instructions) and we would then assist you to review and negotiate it, if necessary.
Advice on Mortgages
Entering into a mortgage agreement carries significant risk, particularly the risk that your property can be seized and sold if you default on your obligations. It is important that you fully understand your obligations under any mortgage.
Your lender may also require that you obtain independent financial and legal advice on a mortgage and we can provide a solicitor’s certificate in respect to legal advice, if required.
Advice on guarantees and indemnities
Guaranteeing someone else’s loan carries extreme risk.
You will often have no control over whether the borrower complies with their obligations or defaults on the loan, and so care needs to be exercised before putting your funds and assets at risk.
Due to the high risk of these transactions, lenders will commonly insist that the guarantor obtain independent legal advice before allowing them to guarantee a loan. We can provide a solicitor’s certificate in respect to legal advice, if required.
Advice on Self Managed Super Fund (“SMSF”) loans and guarantees
This overlaps to some extent with the mortgage, guarantee and indemnity advice discussed above. However, there are additional complexities when loans are being obtained to fund a SMSF property purchase.
Generally, there will be several layers in the SMSF trustee structure and it can be difficult to differentiate between your personal obligations and the SMSF’s obligations.
Lenders will commonly insist that the directors and guarantors of the SMSF obtain independent financial and legal advice before allowing them to obtain a loan. We can provide a solicitor’s certificate in respect to legal advice, if required.
Commonly, our advice to borrowers is completed in conjunction with advice from your financial planner.
You may also wish to review our ‘Advice for lenders’ section to see the types of matters that lenders will be considering when entering into a loan transaction.
Can we assist you with issues relating to borrowing?