Hi, was hoping one of you could help.
My defacto partner and I wish to purchase our first home together. Becasue he is currently employed on a casual basis (full time hours) and has not been employed there for more than 12 months, his income is not being recognised as acceptable to lenders. To get the best deal we can we have decided to put me down as sole borrower, despite the fact he will be contributing to the household. My job is well paid enough to be attractive to the lender and I will have no problem making the repayments all by myself if he loses his job. If I include him however on the loan docs, I would fail the affordability test as he becomes an expense of mine because they don't regard his income.I am of the belief that he would also not be able to be on the certificate of title, ie that would be unacceptable to the lender as if i defaulted on the repayments, the lender would be faced with another person who has half interest in the property. I think that the mortgage is given by the property owner (on the title) as security for the home loan so how can a person who is not on the loan docs do this? Is this true, or can anyone go on a certificate of title? My partner is uncomfortable about not being on the title and I am not sure if he can or cannot.
Sonia from Elwood
Hi Sonia, it may depend on your lender perhaps. I thought this sort of thing occurred where the loan is in husband's or husband and wife's name but the title is just in the wife's name for tax reasons etc. I have heard of it.
Have you spoken with your lawyer and accountant about this? Maybe better to put the house in a family trust to protect BOTH of you.
Vicky
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