I looking to buy a property for my mum to live in . but I can't have property in my name or I lose rental assistance .is there a way for me to buy the property in her name but pay the loan my self ?I really dont want to end up living with my mum at 30. but i dont want her out on the street ether…
I think you probably get the loan in her name and you go guarantor on the loan if mum doesn't qualify for the loan.
This means if mum defaults on her loan it becomes your sole responsibility to take on the loan repayments.
The bank only cares about the loan being paid back and that your mum or you keep up the loan repayments.
By going Guarantor the bank is assured you are going to pay back the loan if mum can't.Some brave parents go Guarantor even though the loan and property purchase is in their child's name.
If their child doesn't pay the loan the parents are approached by the bank and told that it is their responsibility to now pay the loan.
So this is just the reverse of this in your case.Check with solicitor as you will need one to buy property for mum.
You want to discuss with a solicitor to see if a family trust, other trust structure or you as guarantor should be set up to buy the house in the name of the trust with you as Guarantor to know if this affects your assets test for rental assistance.
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