Hi all! I have a PPOR which owes about $380k it is under my name. My mum suggested she'll put $250k cash into my mortgage which means i'll only owe $130k. But the catch is she wants the property to be under her name, and that i have to pay off the remaining balance. This seems like a great idea as i can pay off the remaining ASAP, even though it'll be under her name i'll inherit it when she passes on.
1) is it possible to have the house under her name and the mortgage remain under mine?
2) Is there some sort of transferr fee she'll have to pay to the state?
thanks
Hi PS
Couple of issues here.
1) No the house cannot be in her name and the loan in your name solely. She will need to qualify for the loan as other wise it is a 3rd party mortgage and lenders dont like these arrangements.
2) There will be stamp duty payable again on the Transfer Value if the title is transferred to her.
3) There will be mortgage discharge / transfer and registration fees payable and also a break cost if the loan is fixed rate of interest.
4) Any First Home Owners Grant or First Home Buyers Stamp Duty concession may need to be refunded if the terms have not been met.
Richard Taylor | Australia's leading private lender
thanks for the pointers Richard…hmmm what if mum was to 'gift' me the $250k, the house remains in my name, after i've paid off the house i transfer the property in my mum's name? I understand she'll still have to pay duty but will i be taxed on the $250k?
No Tax payable when you sell your PPOR.
Just need to watch her Pension benefits if she has gifted away 250K.
Richard Taylor | Australia's leading private lender
There are no guarantees in life – regardless of how good her intentions at present, she may change her will on her deathbed & you may miss out. You will need to have a caveat or retain % ownership.
Don't forget that if you transfer the house into your mothers name at some stage, assuming that she is not living in it with you, then any capital gain from that point on will not be tax free.
Is there a special reason why your mother wants the title solely in her name instead of only the percentage that she is financing ?.
Cheers
Elka
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