Hi, can someone please help our situation, we are both 28 years old and like everyone else want to get ahead and start investing by initially building and selling property.
My fiance has the Title to our new home we built in his own name (we met after he bought the land and organised a Construction Loan).
Due to his bad credit I came on board and it took us not only the Home Loan, an Overdraft and a Personal Loan to get the house built whilst repaying his mounted debts.We have since cleared all his bad debts and are about to clear the personal loan and we are looking at refinancing to consolidate the Home Loan and Overdraft as one. We are looking at $600k loan for our property that has been valued at around $850k.
If we put the Title solely in my name, can we also go for the refinance loan in my name (even though I am now a new mum and not planning on going back to work anytime soon) and have my fiance as the Guarantor? Will his past Credit History affect this situation or will we still get slugged with mortgage insurance etc? He is currently on a $180k package with a base salary of $150k.
Or is there a better option?
I'm desperate to get us out of this situation now that we have a little one…
Thank you.
Welcome to the forum and I hope you enjoy your time with us.
There is little point transferring the property into your name as you are unable to support the borrowing and he is unable to be a co borrower from what you have written with his track record.
The fact whether you are able to refinance and consolidate will depend on the extent of his credit history.
Without knowing what is showing on his Veda Credit report or with whom the current loans and how these have been conducted it is difficult to comment further.
Richard Taylor | Australia's leading private lender
Hi Richard,
Thank you for your reply, much appreciated. I have just started reading Steve McKnights latest book "0 to130 Properties…" where he says that the structure he uses is putting all the Lifestyle Assets (car, home loan etc) in his wife's name even though she does not work and he puts all Investments in Trusts – he then guarantees all loans so I thought this would still be applicable to us??? My partner has been offered to refinance with NAB just by himself without me now as I have stopped working (we are currently with Bank of Qld) for a larger amount than we need or will take however they are offering a 2% higher rate for the first 3 years plus adding mortgage insurance which I would like to avoid. Do you recommend trying for a low doc loan with someone else (all debts have been cleared and ) last year.
Should I seek more personalised help from a Financial Advisor?Kind regards
You wont get any lender offer a lodoc refinance especially where you are looking to draw out cash as neither of the mortgage insurers support "cash out" under lodoc.
If the NAB thru their Specialised Mortgage Dept have offered that i would take it and run to the hills as you wont get anything better.
Richard Taylor | Australia's leading private lender
Any lender would look at the credit report of the guarantor too. So transfering it would not really help your situation. Bad credit generally only lasts 5 years on your record so it may even be gone by now. Maybe get your husband to get a copy of his credit report from http://www.vedaadvantage.com.au
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
If bad debt is paid i vaguely remember reading that it then stays on file for life.
not correct.
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
That's good!
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