Question
I want to help a friend by providing cash up front to cover their full 20% deposit on the property in exchange for 20% ownership. However, the bank won't provide them a mortgage at a competitive residential rate if there is a co-investor entity such as a unit trust. I want to remain silent. Can I be on title still? And if not on title, how can I safeguard my share and have security over the asset to some extent?
Answer
You may want to look at other lenders and options. See if you can find one that will allow you and your friend to set it up the way you described. Another option is to look for private lenders to fund your deals. Hope that helps!
