If you are pursuing a joint application for finance, does the title need to have both applicants on it?
ie Can there be a joint finance application with single name on title (one of the applicants)?
James
As far as I am aware the title needs both names. At least with all of my lenders it does.
Sometimes there are ways to achieve otherwise using guarantors etc. I cannot advise without knowing specifics.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.85%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
All people on the title must be applicants to the loan and vice versa. The banks have become strict about this (due to code of banking practice).
They must ensure all applicants have a financial benefit to being party to the loan. Why should someone act as an applicant (and be jointly and severally liable for the debt) and not have a financial interest in the property. In these circumstances the applicant has no financial benefit and the banks won’t touch it. If things went bad the Court would say the bank should have never done the loan because it was not in the best interests of the customer (this has happened).
One way around this is to go tenants-in-common and assign ownership of 1% to one party and 99% to the other.
Good luck.
Cheers
Stu
One of the main benefits to being able to go one on title and two on loan was in the case of a youngster buying their first home.
To improve their serviceability the parent can go on loan as well. But if the parent went on title and they have ever owned a home) then the youngster cannot use the FHOG. If they occupy the property they lose it forever.
This is where I did a number of loans like this.
Sadly this loophole is now closed.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.85%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
hi guys
i am going to have to disagree on this one.
Just took and adelaide bank loan with me on
title and both me and wife on loan (no guarantor
scenario either)Good point. There are exceptions for spouses with some lenders.
Surprised I overlooked this – sorry. That’s my second mistake this year [blink]
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.85%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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