Hi All,
I am about to purchase my first home and need some advise.
I will be living there with my girlfriend and were going to purchase it in both our names. But! lets say we can borrow what we need based only on my wage, can we do everything in my name and, of course, claim the first home owners grant. Then when we buy a second place, do it all in her name and claim it again?
My friend was even telling me he has a loan in both names but the house only in his partners name in order to claim the grant twice? (well, once each). This sounds wrong???
Cheers,
JoelFairly sure the lender will match names on the loan to names on the title – so if you alone are on the loan, they would want your name only on the title. If you are one of two parties on a title, the bank would see your ownership as 50% unless otherwise stated and potentially only lend 50% of the cost. But not 100% sure of this. Quite sure of the other way round, ie if name NOT on the title, you CANNOT get a loan in your name for it.
As for FHOG, it goes by name on title. So you need to have not had your name on a title previously for residential purposes.
As for whether to do it together or not with your girlfriend, it all depends on the definition of your relationship in the eyes of the state. If you are not legally classed as DEFACTO (in most states this means having an interdependent relationship and cohabiting for at least 12 or 24 months), you could each purchase separately and each receive FHOG as far as i am aware, but don’t forget the 6 months residency requirement. My husband purchased using FHOG before we got married, and before we were living together for 24 months. I had received FHOG years ago, we realised he was eligible for a few months only so instead of buying PPOR together, we downsized our dream and he bought solo using FHOG.
If however your relationship is classed as defacto, according to ATO or your state law, you probably can not each receive the FHOG separately.
Just also be 100% convinced of your relationship before entering into property ownership together… its a serious decision, much moreso than just living together. If you can service the loan entirely on your wage alone and borrow sufficient to purchase what you’re looking for, it may be better to go it alone.
jump onto google and check out the FHOG conditions for your state, and see if you can find out how the define spouse/defacto.
Buying your first home is exciting, congrats and enjoy the experience.
Cheers,
EmmaThanks Emma,
Ill definitely be looking into this thoroughly as its a lot of money on the line and will keep this thread updated when i decide what to do.
I think it will come down to the fact that we cant borrow what we need based on one of our incomes. So we may not have much choice
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