Since your mum is an owner of the property the loan must be in your name and hers – or maybe your name only with a guarantee from your mum.
Lenders are also very fussy about giving money out without knowing the full reason and, sometimes even controlling the payment of the funds. "investment purposes" won't make it anymore – it used to be ok.
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
Thanks Terry
Terryw wrote:Since your mum is an owner of the property the loan must be in your name and hers – or maybe your name only with a guarantee from your mum.I would much rather My name only with a guarantee from my mum. What about adding my partner's name to the loan. Would this be a problem?
Terryw wrote:Lenders are also very fussy about giving money out without knowing the full reason and, sometimes even controlling the payment of the funds. "investment purposes" won't make it anymore – it used to be ok.What would be the best thing to say in my case? Should I just say the truth?
Banks generally allow spouses on the same loan even when they are not on title. But non-spouses they don't like. (Spouse includes defacto).
You want to borrow money to finish off a project – seems to be a good reason to me.
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
Terryw wrote:Banks generally allow spouses on the same loan even when they are not on title. But non-spouses they don't like. (Spouse includes defacto).You want to borrow money to finish off a project – seems to be a good reason to me.
Thanks for that. Why is it they don't like non-spouses? My non-spouse is already on the first loan (as in the one that we got agains the block of land). Would this make any difference?
They don't like third parties cause it can get messy if they have to reposses the property.
All persons giving the guarantee or going on the loan will have to pass the serviceability assessment of the lenders too.
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
This is generally referred to as third party security and is not uncommon for aggregated loan positions. The biggest issue is that you end up with a pile of guarantees you can't see over! For the financier it's always the same issues: security (and their unimpeded access to it), your ability to service the debt, and a risk free LVR. Oh, and they like to know what you're really doing with their money.
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