We can provide the certificate of independent legal advice required by banks and other lenders for various situations including:
- Guarantor loans (also known as family pledge loans) for home loans that require a guarantor
- SMSF loans
- Waiver of Cooling Off
- Reverse mortgage loans or equity unlock loans.
All these certificates are provided for a fixed price – call us on 08 8278 1779 for details. Advice can be given in person at Blackwood or O’Halloran Hill or via Skype video. We understand that often these certificates are required at short notice.
We regularly advice parents and individuals who intend to provide a guarantee for another person’s loan. With rising property prices often young people are unable to provide all of the required security in order to obtain home loans at competitive rates. In these circumstances mortgage brokers and banks will require that a solicitor provide a solicitor guarantee certificate of independent legal advice to confirm that the guarantor fully understands the legal consequences of giving such a guarantee.
Some of the common situations where a solicitor guarantee certificate and independent legal advice is needed include:
- Parents providing a guarantee for a child’s home loan (family pledge)
- Home Loan Guarantee – where the borrower is contributing less than 20% of Property Value
- Husband/Wife or de facto guaranteeing the debt of their partner
- Loans to Family Trusts
This is not a simple “witness your signature” exercise, but requires that the guarantor or guarantors have read all of the provided information prior to the interview. The interviews generally take around 30 to 45 minutes stepping through our standardised process to ensure that all guarantors enter into the guarantee with open eyes and fully informed – unlike Mrs and Mrs Amadio
We understand that many guarantors will already have a very good understanding, but the lenders will still require the solicitor guarantee certificate before advancing monies. For more information please see Loans involving Family and Friends at ASIC’s MoneySmart website.
Many SMSF have a structure where the directors of the trustee company of the SMSF are the same persons who are the beneficiaries. In such cases, when the corporate trustee borrows on behalf of the SMSF (usually to invest in real estate) the lender will often require the beneficiaries (in their personal capacity) to guarantee the loan. We can provide the necessary certificate of independent legal advice after reviewing the documents, including the SMSF Trust Deed.
These loans will also usually require that your accountant or financial advisor provide a certificate that you understand the financial implications of such loans.
Waiver of Cooling Off Rights
Sometimes the vendor or their agent will want a purchaser to waive their cooling off rights as a condition of the sale. This will usually be the case where an offer is made prior to auction for a property scheduled for auction. W
Waiving your statutory cooling off rights requires that you receive independent legal advice as to the impact of waiving those rights. For more information see Legal Services Commission – Cooling Off Period
Reverse mortgage loans or Senior’s Equity Unlock loans.
People who wish to unlock the equity in their homes will often require a certificate of independent legal advice in order that they understand the legal consequences of such a loan. We can provide the necessary certificate and will also assist with the Reverse Mortgage Calculator at ASIC’s MoneySmart website.
This calculator helps you work out:
- How much your debt will increase over time and what this means for the equity in your home
- How changes in interest rates and house prices could affect the equity in your home
Please note, often the lender will require that a certificate of independent financial advice from a financial advisor, or an accountant is obtained. We can make recommendations, but we cannot give this advice.