I am in the process of finalising the purchase of my first property, which will be used as my PPoR.
A loan has been approved solely in my name as I was advised not to include my partner in the loan application since she is a sole trader showing less than 12 months of business activity.
My broker has also advised me that it is not possible to add my partner to the title as the lender will object.
I now have formal approval for the loan and want to ensure that I have been advised correctly before settlement occurs.
The ideal outcome is that I remain the sole party to the loan but both of our names are on the title. Is this possible?
The contract was signed in my name "or nominee".
Everyone on title must go on the loan. Legally it wouldn't be possible to lend money to one owner of a jointly owned property without the other's permission or consent.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Why wouldn't you include her on both the Title and the loan but not declare any income for her.
As you partner she wont be able to access the FHOG down the track so might as well include her here.
Richard Taylor | Australia's leading private lender
Thanks Terry and Richard.
Terry, your comments support what I have been told already.
Richard, I wasn't aware that I could include her on the loan but not declare any income. At the time of lodging the loan application I was advised that she would be classed as a dependent by the lender due to her limited trading history and that this would reduce the loan amount for which I would be considered.
A loan that is solely in my name has now been formally approved and settlement is scheduled for 7 January, 2009. Is there any change I can undertake now to add my partner to the loan and the title?
Thanks again in advance
Cheers
BShe will be treated as a dependant whether she is included or not.
The lender will still classify it as 2 Adults in the household.
If you wish to add her to both the loan and title then you would need to have the purchase contract amended or depending on which State you are in the Nominee Clause showing her inclusion and the letter of offer and mortgage documents (if issued) redone.
Given the time of year might not be such a good idea.
Richard Taylor | Australia's leading private lender
Thanks again Richard.
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