Sale of Property – Complex Existing Loan Structure

An existing First Point Group client holding several loans (personal and investment) secured by their home, had now sold their property but wanted to retain all their investment loans for tax purposes

Challenges Faced

Standard Lender practice is to extinguish all loans secured by a property when it is sold, and another property is currently not available as a substitute security


We were able to work with the client’s Lender to negotiate a settlement structure whereby the investment loans could remain open by offering up a portion of the sale proceeds on a Term Deposit as temporary security against the loans.  The loans that needed to be repaid were closed. The client has retained their ‘tax deductible’ investment loans. When they purchase another property, the Term Deposit funds will be able to contribute towards the purchase

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