Adding spouse name after settlement

Hi,

At the moment, my bank loan only grant me the investment loan under my name as mortgagor.

Since I believe that the high yield IP in QLD will produce some CF+, I wonder how can I add my partner to the property ownership so that she can claim the negative gearing component rather than taxing myself on the higher bracket ?

 

So you're saying that you are the sole owner of the property and you hold the mortgage by yourself?

 

Yes at the moment, but later on I would like to add my spouse name into the property.

 

I assume you're talking about your Park Ridge property and I'll also assume it's an IP not a PPOR. In this case I'm pretty sure that there will be a stamp duty payable on this transaction. @Terry_w can confirm.
If it was your PPOR you could 'gift' a share to your wife with no duty payable under Section 151 of the Queensland Duties Act 2001.

 

In QLD stamp duty will apply. You need to see a conveyancing solicitor and sell her part of the property at full market value. She needs to borrow to buy you out otherwise the interest will not be deductible.

 

Ah yes, thanks Terry for the clarification.

 

Yes, it will be for investment purpose not for the PPoR.

Because the situation at the moment is that I've already added my spouse name into the contract but somehow the bank representative mentioned that only my name is listed under the mortgagor.

It is due to settle on Monday, so rather than rescinding the contract now I guess it would be make more sense to cross off my spouse name from the contract on Monday by the power of attorney or something like that ?

PS: Re-assessing the loan will take another 3 more weeks and there is potential that the bank will not give the loan.

 

Seek legal advice. Whose name is on the transfer is what counts. And you won't be able to settle if there is 2 on title but 1 on the transfer

 

@Terry_w

Myself in the Bank mortgage document
Myself + Spouse name on the Contract

is that a problem to worry or not really ?

 

Depends who is on the transfer. Bank won't settle if title is in 2 names but 1 on loan.

 

OK, so yes, I'll seek my lawyer advice on this.
one working days to settlement and the mortgage broker just spotted this issue ... far out....

 

I am surprised the bank approved it, and then produced the documents. They usually require a transfer to be required - usually after the docs are out though.

 

That's what I'm confused as well.

The bank approved the loan on the basis just my name, but then during the unconditional contract signing, both me and my spouse sign on it.

After the contract goes unconditional, somehow no report from the bank until now the mortgage broker discovered this issue one day before the settlement day ?

 

Bank would be relying on the contract and would not know about the additional owner unless they are told.