HI All,
I will be more than likely buying out the other half of a property I own with my partner.
It is currently under finance and has LMI. I know I will have to pay more stamp duty but will I have to pay LMI again?
I have also been making all the repayments myself which are trackable. Will this put me in good stead for the refinance approval? There is not much profit currently in the property so won't have to pay out much if anything.
Hi Fredo
If you can stick with the same lender it should be possible – avoiding LMI that is. You'll need to contact them (or your broker) to suss out.
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]
Do you earn enough to service the loan alone?
Can I ask why you need to do this? I'm assuming tax reasons?
Think carefully if so, for long term as well as short term.
fredo_4305 wrote:HI All,I will be more than likely buying out the other half of a property I own with my partner.
It is currently under finance and has LMI. I know I will have to pay more stamp duty but will I have to pay LMI again?
I have also been making all the repayments myself which are trackable. Will this put me in good stead for the refinance approval? There is not much profit currently in the property so won't have to pay out much if anything.
I think LMI would be payable again because ownership is changing.
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
I pay the loan myself anyhow. My partners name was there just for the sake of it. Stupid in hindsight.
My partner and I are separating, so only half of it would technically be changing names.
Maybe able to get around stamp duty depending on the State.
Yes hate to say i think LMI would be payable again as the risk is changing.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If LMI is payable again – maybe look at getting a couple of upfront valuations done. Hopefully one of them comes back high enough so you can avoid another LMI hit.
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]
fredo, my colleague just went through this exact situation. He avoided paying stamp duty because if you separate through the family court it is not applicable.
"By recording the agreement or outcome in an Order or Agreement, then stamp duty is usually waived on real properties being transferred as between partners/spouses."
He also avoided paying LMI again because he refinanced through the same bank (bankwest).
Hope it helps.
Minds eye hate to say S/D may well be payable depending on the State in which you are in.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
From my understanding In WA if you go via the Family Court you can be exempt from stamp duty if the separation/divorce is settled within 12 months for married and 24 for defacto.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
I am pretty sure every state would have stamp duty exemptions for the break down of a relationship. NSW does.
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
Hi Guys. Property is in QLD. I can see its likely ill be required to pay both again. I think its BS and money grabbing as its only removal of a name. But thats life I guess.
fredo_4305 wrote:Hi Guys. Property is in QLD. I can see its likely ill be required to pay both again. I think its BS and money grabbing as its only removal of a name. But thats life I guess.Not merely removal of a name – changing of legal ownership. Not much of a bigger change than this.
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
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