Hi,
Guys, I need your help/advise. Do you know any home loan facility/provider available to me for the following situation?
I’m looking to borrow around $80k to consolidate my and my mum’s debts (incl. m/v loan). I have an income and my mum has her house. So, I decided to apply for the loan in joint with mum, putting the mum’s property as a mortgage.
The loan provider came back to us with a conditional approval and the condition is that my name to be added to the title of the property. However, I’m hesitatant to do that, since, if I do that, it is my understanding that I will very likely lose the entitlement for the first home buyes’ grant and duty exemption for the future. And, I’m planning to buy my own property quiet soon once the debt issue is resolved.
So, is there any loan provider that will provide the loan without adding my name to the title of the property?
Thanks guys in advance!
You have to be careful here, going on title with your mother will effect your FHOG eligibility,
It will also dramatically effect your borrowing capacity over future loans, i.e. from a lenders point of view you will be assessed as servicing the whole debt attached to your mothers property.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
yes, that’s my concern as well. The house is owned outright by mum without any mortgage, by the way. I’m trying to improve our cash flow first, then, sell house to repay my loan in full and purchase two properties, one for us to live in and one for investment property, so, FHOG is also very important to me.
Initially, I tried to get loan under my name only and mum being a guarantor of the loan, using her house. But, my mortgage broker told me that we should apply for the loan under both of us. Is it really correct? I don’t really want to lose the eligibility for FHOG…
Thanks, guys
Steven is right i could not recommend on going on the title with your mother especially if you are elligible for the FHOG.
Any mortgage broker who suggested that i would be dumping and moving on to someone else
If you mother is happy for her property to be used as security then it would be easier to do the loan in her name solely (subject to serviceability) and this would have no effecton your future borrowing.
The interest rate would be more attractive than your unsecured borrowing and would give you the opportunity of repaying any loan that much quicker.
Make sure if possible there is no early repayment penalty so that when you sell the property you can repay the balance and move on to achieving your actual initial goal.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
If the property is unencumbered and you intend to sell then why not wait until the house is sold and use the funds as a deposit on the new purchase, your mother could also gift you the deposit for your investment property. cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
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