ugez009,

Guidelines for FHOG is that you occupy the property for 12months however technically 6months is satisfactory. I have been told that the way they check to make sure your residing at the address is through the power bill.

I will not make comment about how to get around the minimum term as you can be fined and incur a jail sentence if you are not adhering to the rules.

Joshua McEwen
Finance Broker – WA

http://www.prestigeloans.com.au

Brokers Lic 1297
Licensee Brett Christie

Can we just change the title and carry on the loan in me or my brothers name?

You can change the title from your Father’s name to your name this is done at settlement, however it is up to your dad what he wants to do, if he wants you to just payout his mortgage or wants you to pay him out in full….Stamp Duty is applicable on the valuation amount conducted by the Valuer General.

But if I am buying a house for $270k and its worth more do i still need a deposit of 20% or 10%.

Depends on what he wants to do. If he just wants you to payout his mortgage or if he wants you to pay him out in full (buying the house at market value)

Once your Father has disclosed what he wants to do then we can go further into the types of fees you may be up for.

Joshua McEwen
Finance Broker – WA

http://www.prestigeloans.com.au

Brokers Lic 1297
Licensee Brett Christie

Danield,

Would it be more feasible just to add your name onto the home loans existing at the moment. its just a Internal Re-finance where we payout her loan then make a new loan for the same amount but just in both names. This way you dont have to come up with $1,050,000 to pay her out and be on the title. You can add your name to both those home loans pretty easily. She can also do the same for your own investment property.

In regards to the title deeds. The settlement agent will arrange the deed to show both names on the property as joint ownership. However, you might have to pay some stamp duty on the investment properties but this will be in the hands of the settlement agent and they will disclose the nitty gritties of the applicable fees and charges.

So what im basically proposing, is to add your name onto her existing loans by doing an internal refinance. Sooo… for example, that your wife’s loan was $90,000. Do an application in both your names for the amount of $90,000 to payout her loan and transfer it into both your names, and do these for the other two so that everything is in both names. you have enough equity to pay for cost of all this however comes down to servicability. Lender will have their charges aswell

And settlement agent will arrange for all the properties to be in both your names. However costs will incur here however, speak to the agent and they will divulge the costs incurred.

Hope that makes a little sense.

Joshua McEwen
Finance Broker – WA

http://www.prestigeloans.com.au

Brokers Lic 1297
Licensee Brett Christie

I was abit concerned about the stamp duty payment and investigated abit more, and i found that in WA you are exempt from stamp duty (transfer of land) if you are purchasing a property from your spouse. If your in a de facto relationship you have to be with her for more then 2 years. However, you must be both on the title, you cant go from your spouses name only to your name only, it must be transferred into both your names as joint ownership.

As your profile says your in Melbourne, VIC. i took a look at the whole Duty Act 2000. And here is an extract of it concerning marriages and relationships…see if this helps you

43. Marriage and domestic relationships

No duty is chargeable under this Chapter in
respect of a transfer of dutiable property from one
person to another person, or from two people to
one of them, or from one person to themselves
and another person if—
(a) the people are spouses or domestic partners
of each other; and
(b) no other person takes or is entitled to take an
interest in the property under the transfer.

Interesting i might add.

Joshua McEwen
Finance Consultant – WA

http://www.prestigeloans.com.au

Brokers Lic 1297
Licensee Brett Christie

Hmm…seems right. Once the lender offers to repay the debt at a lower amount then the lender can put it on his credit report, as it shows to other lenders that he was not able to keep up with the debt and they had to negoitate a lower repayment then what he signed on his loan contract.

(If it was me) Its all about budgeting. i would write down all my income and expenditure. Then work out what i dont need and what i need.

If the default isnt lodged then a personal loan might be feasible however when a lender consolidates debts the lender would want 3-6month statements to make sure good conduct has been preformed on his part.

There is no easy way around things like these. However good budgeting skills is the key to saving the most amount of money so he can pay off his debts. Like i said just write down all his expenses and income then cross of one by one what he can save a few things here and there.

I educate my family to budget, especially my sister. When income is credited to your account, the first thing you should be doing is paying all your liabilities, ie. credit cards,board,personal loans. Then what ever is left over is yours.

FInance disclipine!

I hope this helps a little and good luck.

Joshua McEwen
Finance Consultant – WA

http://www.prestigeloans.com.au

Brokers Lic 1297
Licensee Brett Christie

NoEnd,

Hope everything goes well with the first property. Here are a few lenders to check out Carrington National, Interrstar. They do NoDoc 80% Regulated.

Please remember that you have to cover your cost for purchasing the house and plus the lenders fees. You may have 20% to deposit on the house, however there are lenders cost and purchasing costs. This will total a couple of grand. As your first home owner, you are exempt from stamp duty on transfer of land up to $250,000. Between $250,000 & 350,000 you have to pay this stamp duty but at a lower cost then normal rates. ANything above $350,000 then you pay the normal rate.

Please any other questions, dont hestiate to ask!

Hope this helps you on your way to becoming a property owner!

Joshua McEwen
Finance Consultant – WA

Mob:0430 452 497
http://www.prestigeloans.com.au

Brokers Lic 1297
Licensee Brett Christie

Well the interest rate that you have is a great deal. You locked them in at a good time. At the moment, ANZ, CBA and Westpac have recently increased their fixed rates, forecast that more lenders are going to follow the move.

If you wish to break those terms then you might be scarificing some cashflow as you will probably be paying more in interest with the current market rates. However i cant guarantee that you wont pay any charges for breaking those terms due to the interest rate you currently have compared to market value at this point in time but i cant see any ‘economical cost’ incured for breaking the fixed term.

Its all about what you want to achieve, what do you want basically. Are you looking to sell one or both of them soon or wait for the fix term to curl over or are you wanting to change lenders?

Joshua McEwen
Finance Consultant – WA

Mob:0430 452 497
http://www.prestigeloans.com.au

Brokers Lic 1297
Licensee Brett Christie

Stu,

I definitly agree with the article.

Cross-securitisation can be good and bad. You have to understand what the investor wants, to get a picture of the events that might lead up in the future. Then turning the scenario onto yourself saying “what would i do in this situation”. Many people can benefit and many people will not, just depends on the situation and your experience within the industry so that you can give the best possible advice.

Joshua McEwen
Finance Consultant – WA

Mob:0430 452 497
http://www.prestigeloans.com.au

Brokers Lic 1297
Licensee Brett Christie

Winzer,

Check out carrington national finance. They do a Low Doc 95%. Ask your broker about how they might help you.

Tell us how you go.

Joshua McEwen
Finance Consultant – WA

Mob:0430 452 497
http://www.prestigeloans.com.au

Brokers Lic 1297
Licensee Brett Christie

just_car1,

Owner Build constructions dont sit quiet well with lenders now-a-days. They are becoming accustom to it though but it will take awhile. They like to see the funds that they are lending to be done by a professional builders, however this is not to say that they wont lend to you but from what i have seen, when you mention owner builders to the lenders most of them dont come to the party.

Some options would be:

1) Applying with someone, so that the neccessary gap between what you can borrow and what you want to borrow can be fulfilled
2) your parents equity as security for your loan ( as you stated that you can at the moment, might mean some waiting)

Do you have any other income? Have you saved for a deposit? what kind of liabilities do you have? are you eligible for the First Home BUyers Grant?Are you wanting to stay in the home or wanting to rent it out? Just need an overall position of yourself to give you some leads or a point of direction

Joshua McEwen
Finance Consultant – WA

Mob:0430 452 497
http://www.prestigeloans.com.au

Brokers Lic 1297
Licensee Brett Christie