POR with guarantor loan

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goodday
Participant
@goodday
Join Date: 2023
Post Count: 0
October 23, 2023 - 1:25 am
Hello Members,
I am newbie in the club of property investing. I have 2 small investment properties around 250K mark (one on my name and other as trust-company structure) and looking for POR. After reading the Steve’s indepth and spot on book, I am looking to purchase my POR on my Wife’s name. Now, with young kids, my Wife is low earner. I have looked online on Banks and I cannot find any secuirty gurantee loan, where my Wife own the property and myself being guarantor for the morgage payment.
I am confused with Owning the property vs Borrowing partner in the loan. As most bank I see, they only loan the money if I am part of loan application as borrower. The question is will that impact my furture borrowing capactity with trust-company structure for growing investment properties?
Can anyone please share such loan products available on the market to analyse where I can be guarantor?
Feel free to share if you need more information.
Regards,
Good_Day
P.S. Moderator: Please share if I need to move the topic to other forum Category.
Christopher Berry
Participant
@chrisberry
Join Date: 2018
Post Count: 1
October 27, 2023 - 9:12 am
Good Morning,
You can purchase a property where your wife is the sole owner of the property, and you are only on loan as a servicing guarantee as long as you are using a lender who provides this ability, which the majority of lenders do and as long as it is between a husband and wife or defacto partners.
However, you must understand that any debt related to your PPOR, whether you are a servicing guarantee OR an applicant, will always need to be included in your personal liabilities on any future finance applications. Regarding future borrowing capacity, this loan(s) will also be included in your servicing as it relates to a personal asset.
Where the property is an investment and owned under a trust/company, you do have the ability to exclude this debt from your overall personal servicing as long as the property is positively geared and the income received from the rental property covers all related expenses such as home loan repayments, maintenance, real estate rental costs etc. You will also need a letter from your accountant confirming the trust is positively geared and can cover all of its own expenses.
I hope this answers your questions, and if you would like to discuss further, I assist Steve and Property Investing with any finance enquires and am happy to have a bit more of an in-depth discussion regarding the above.
My contact details are as follows;
Chris Berry
[email protected]
0477 212 840
Christopher Berry | Find A Better Rate Home Loans
https://findabetterrate.com.au
Email Me | Phone Me
Taking the Hard Work of your home loan
goodday
Participant
@goodday
Join Date: 2023
Post Count: 0
November 3, 2023 - 2:18 pm
Hi Chirs,
Sorry I was not reachable. Your answer is spot on.
I really appreciate your time and effort in answering in detail and more importantly at newbie level. I will definitely will be in touch with you if something comes up.
Have a blessed weekend,
Good_Day
Trevordard
Participant
@trevordard
Join Date: 2023
Post Count: 0
November 10, 2023 - 11:54 am
It’s great that you’re exploring options for your POR. When it comes to securing a loan with your Wife as the property owner and you as the guarantor, it can sometimes be a bit tricky with traditional banks.
One option you might want to explore is reaching out to a mortgage broker.
goodday
Participant
@goodday
Join Date: 2023
Post Count: 0
November 10, 2023 - 12:14 pm
Thank you @trevordard for the advise.
Trevordard
Participant
@trevordard
Join Date: 2023
Post Count: 0
November 29, 2023 - 11:47 am
Trevordard wrote:
It’s great that you’re exploring options for your POR. When it comes to securing a loan with your Wife as the property owner and you as the guarantor, it can sometimes be a bit tricky with traditional banks. One option you might want to explore is reaching out to a mortgage broker.
They often have access to a wider range of loan products and can help you find a solution that fits your specific needs. I consult with a Mortgage Broker for all my financial matters, and they’ve been a fantastic resource.
As for how this might impact your future borrowing capacity within your trust-company structure, it’s a valid concern. It’s essential to discuss this with a financial expert who can provide tailored advice based on your unique circumstances.
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