hi all,
i have been a single mum for awhile now. while i was married my ex and i had some money issues and i now have defaults. which i am trying to pay.
after alot of thinking and working hard (perm casual) i am looking at home loans.
my parents who own their own home with no loans agaist it have said to me to find out more info about using the equity in their home to see if they can help with deposit etc.
i have been told it can be done, but no one has really explained it other than saying i need a 20% deposit.
can anyone explain in more detail please.
regards
jenny
Hi Jenny
Depending on the to whom they were in favour of and the number of defaults you may find getting a loan in your name harder than you think so Yes if they are prepared to allow you to utilise the equity in their property this would be a good idea.
You may even require more than 20% deposit depending on the information above so they way it would normally be structured would be that they would take out a loan and gift to you the deposit and acqusition costs.
You would use then use these funds to purchase the property and the balance would be done with a loan in your name secured against the property you will be purchasing.
Your mortgage broker should be able to provide you with options once you ascertain the extent of the credit defaults.
Richard Taylor | Australia's leading private lender
probably best for your parents to get a loan and lend you the deposit. you should be able to get a loan at a decent rate too.
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
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