Hi,
My mother has recently acquired half of her family home and wishes to buy out her sisters half of it. The propety is valued at $260,00 at the present time. She has no credit history at all and the bank has refused to lend her the remaining $130,000 due to her income. Is their any financing in Australia that would allow her to take the loan with the collateral being the house, with interest rate that would be reasonable?
Thanks.How is she going to serve the debt?
rb2011 wrote:Hi,
My mother has recently acquired half of her family home and wishes to buy out her sisters half of it. The propety is valued at $260,00 at the present time. She has no credit history at all and the bank has refused to lend her the remaining $130,000 due to her income. Is their any financing in Australia that would allow her to take the loan with the collateral being the house, with interest rate that would be reasonable?
Thanks.Your post indicates you mother has approached the bank directly.
Recommend she speaks to a broker as there may be other banks who are a little more friendlier. At the end of the day your mother will have to show she can service the debt. Is this an issue for your mother?
Derek’s right. Different banks have different criteria when assessing serviceability – while your mum might not fit the criteria with the bank she visited, she may fit it with another.
Perhaps have a quick chat with a broker. Do keep in mind however, that if your mum suspects that servicing the debt will be difficult then it would be best to avoid this commitment.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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