FHOG rules

You can go guarantor on the loan, but simply going guarantor doesn’t mean much to the banks anymore (they dislike repo’ing guarantors property, esp. the family home), so they still will assess her on the main loan criteria and if she doesn’t qualify then they will simply deny the loan.

There is also problem if you try to get the loan, but she ‘buys’ the property (i.e. title goes in her name). The banks would call the loan back (as you have breached one of it’s conditions) and you would have to pay back the loan immediately.

So there are 3 options, first you gift her 20% deposit (she can get a no/low docs home loan, but still must meet bank criteria), or you could on sell with a wrap (so she can still qualify for FHOG). For more info on wrapping go here:
http://propertyinvesting.com/forum/forum.asp?FORUM_ID=13

If it was me, I would wait until she got a job (how will she pay the mortgage if she doesn’t have a job???). So she might have to get short-term rental, or move in with you, but if she can’t see the opportunity you are giving her (for a bit of short term inconvenience) then she obviously can’t handle the responsibility of a mortgage (this point is extremely important).

The third is you buy a place together, but put title in her name, but that means you are both repsonsible for the loan and she could kick you out at any stage and you would have to go through a court battle to get recognition that you on a part of the property. If you went down this path you I would suggest you go and see a lawyer (one that knows about cavets, etc).

Rgds.
Lucifer_au