Hi
I’m posting this question for a close friend. Due to circumstances she needs to pay out her mother who has a share in her home. She got into trouble in 2009 when she lost her job and nearly had the house repossessed, but has had a perfect record since. She works fulltime hours but is officially employed as a casual worker. Her income is less than she would need to service the new loan however she has two borders and her partner pays part of the mortgage ( she has actually been paying the loan for her mothers share for over a year).
Her partner has unemcumbered property worth about 1.5mil (PPR) but works for himself and doesn’t have a big income on the books – what sort of a equity would her partner need to put up for the banks to not need to assess serviceability …. Or is that even possible anymore? Also would there be stamp duty implications in adding her partners name to the title, the home is in WA.
Thankyou in advance for any advice you can give it is very much appreciatedAnnie
Hi Annie
Brokers/bankers need to perform a fact find on each clients situation and be comfortable that they are not placing the applicant in a position which could place them in financial hardship which sounds like it may be the case with your friend. If she can't afford it – she shouldn't apply until she's in a position where she can.
Cheers
Jamie
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]
As Jamie has mentioned the old "liar loan" as they were called have been and gone but in saying this as long as the loan can be justifyably serviced there is no reason why it cant go full doc.
Certain lenders do consider border income and many lenders accept casual income so it all boils down the actual numbers.
Simple rule of thumb is if you cant afford the repayments dont take the loan in the first place as it is so easy to get into trouble or overcommit.
Further details are impossible to provide without more hard data.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Answer to your post- Yes low doc is still available, and some banks ONLY does low doc loans…there’s a market for it apparently
With self employed even though the “books” or tax return may be low, there are certain add backs that can be included to boost the bank’s serviceability.
But most importantly as Jamie and Richard has mentioned; you need to be able to afford the loan to apply for a loan, even for low or no doc.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
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