Gdday all,
I live in NSW, and I need to understand the legalities in regards to adding a spouse's name to a property title which has an existing mortgage. Wasn't impressed when the lender responded that the only way to do it is through a refinance. Now all I was interested in was adding a spouse's name on the property title being our home, and not the loan. But they cannot separate the two due to their policies. Is there a way around it instead of a full refinance??? I understand there will be extra lender's fees plus solicitor's plus stamping and registration if any (not sure).
Would appreciate some professional advice on this please…No hate to say they are correct.
The loan and mortgage documents will need to be amended.
I am assuming the property is not an IP as both CGT & Stamp Duty may also be payable.
SD is payable on a change to a PPOR anyway in some States.
Richard Taylor | Australia's leading private lender
If it is your PPOR and it has currently in your name and you want to add your spouse's name, then it is exampt from SD under the Act. This is one of the very few situations where there is a SD exemption.
Cheers
K
Hi Linar,
Does that only apply to a spouse? or can it be done within the family. Say can my parents put my name on their PPOR property and the loan without the need to pay stamp duty?
For PPOR only applies to spouses
Farming properties there are some additional concessionsCRJ is correct. It only applies to spouses and then only for a PPOR, not an investment property. There are other circumstances when there is a SD exemption but they are too complicated to go into on this forum.
Cheers
K
nancy01 wrote:Gdday all,
I live in NSW, and I need to understand the legalities in regards to adding a spouse's name to a property title which has an existing mortgage. Wasn't impressed when the lender responded that the only way to do it is through a refinance. Now all I was interested in was adding a spouse's name on the property title being our home, and not the loan. But they cannot separate the two due to their policies. Is there a way around it instead of a full refinance??? I understand there will be extra lender's fees plus solicitor's plus stamping and registration if any (not sure).
Would appreciate some professional advice on this please…There are 2 issues here. 1 is the ownership and the other is the loan.
By adding someone to title the ownership of the property is changing. Therefore the loan will need to be done again.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thank you everyone for your help. Aren't I so glad I found this forum, it's very educational and informative. I like the part where stamp duty is exempted on the Certificate of Title and the Mortgage being our PPOR.
Now that we're in the process of refinancing our loan of approx 3yrs, will it be better to ask for an additional advance now for a family holiday next year since we're doing it, rather than refinancing just for the sole purpose of amending ownership??? Say rougly $10k-$20k subject to entitlement and approval. Or is it best to just leave it and go ahead with the first process and ask for a redraw next year? Again please help.
Personally i would not mix the 2 loans as this could cause you problems in the future.
Establish a line of credit now for the 10-20K so that you can utilise the funds when you need as the way the market is the facility may not be approved in a year.
Richard Taylor | Australia's leading private lender
Thanks for that great advice Richard. Apparently, we've already had that facility of $10k for approx 3yrs now which is helping with family commitments and so forth now and then eventhough the interest is incredibly high. Maybe I'll stick with the first plan of refinancing to amend ownership of our PPOR and leave plan B for another reasonable time. Any other suggestions?
By the way, I'm not sure whether I've thoroughly covered every detail of the mortgage or whether I've missed something that reveals the banks' lending values??? I know one bank overseas which lends out 64% of the market value of the property, i.e. say market value of property is $400k, the bank's lendable value of 64% is $256k. If a borrower only asks for a smaller advance say $100k, then he'll have a securityy surplus of $156k. If he requests a higher loan than $256k then he'll need to bring in additional security to cover the shortfall; otherwise a high interest will be charged if there is still a shortfall but subject to ceo's approval. I'm just wondering if it's a similar strategy here in Aussie particularly NSW? Can someone elaborate on that please. (I'm sorry I seem to have a lot to learn about the Aussie system being an immigrant, so please bear with me.)
Banks here will lend up to 80% on residential property, over that they will ask u for Lenders Mortgage Insurance…Costs a few grand, but can be cheap if the deal on the investment Real Estate is right! Just ask a home loan lender at your Bank, they will tell you all the figures.
Cheers,
John BradshawWow that's a very good % thanks for that info John.
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