Would it be possible for somoene on a centrelink study allowance to get a home loan in their own right if someone with an income which could cover the servicability went as guarantor for their loan?
You might be well and truly stretching things here I’m afraid, although without more info on exactly what you had in mind I can only generalise. Some non conforming lenders will count pensions and other centrlink payments, but of course you would still have to be able to service the loan. SOme lenders will allow what is called ‘servicing support’ but it does get tricky, and of course there is having to find a an immediate family member (who generally is all that is accepted in these cases) kind enough to do this for you, knowing that they could get stuck paying all the payments indefinately for a house that is’nt theirs….also why one of the conditions for a loan of this type is that independant legal advice has to be sought form the person offering the servicing support, so they know what they are ‘getting into’. All the best[strum]
Depending on who the Guarantor was.
Reason i say this i have just done a deal with one of the Big 4 where the girlfriends income although disability pension was taken (And certainly could never show serviceability on her own) although her boyfriend was a Gurantor and not on either the loan or title (other than in his capacity of Guarantor).
Simple reason was that B/f didnt want to be shown on the loan documents (we won’t go into the reasons why) but she couldnt service alone.
There are always reasons why a deal can be done as long as their is some financial benefit to the Guarantor.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
have you considered this scenario. You have the investment property negative geared and centrelink then deem the net rental loss as income and you lose some or all of your Austudy payment. Or you make a positive rental income and centrelink then deem the net rental income as income and you lose some or all of your Austudy payment.
Do not assume logic and fairness when dealing with Centrelink.
There goal is to keep you Welfare dependant.
[ohno2]Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Unfortunately, most of the lenders would only accept permanent Centrelink payments, such as Military/disability pensions or Family allowance. Newstart Allowance or Austudy are not generally accepted as a major income.
You may still however try to use your IP as a major source of income, however that would most certainly lead to you loosing your Austudy benefits. One of the ways to go is to have someone else on the title.Vladimir Alter
Smartline Home Loans, Sydney
Ph: 1300 VLADIMIR (1300 852 346)
Website: http://www.smartline.com.au/valter
Email: reduce.mortgage(AT)gmail.com
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