Expat home loan - loan in one name but partnered

Discussion in 'Loans & Mortgage Brokers' started by SurfKreeper, 19th Nov, 2020.

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  1. SurfKreeper

    SurfKreeper New Member

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    Aussie expat here. Trying to figure out qualification for Oz expat home loan. Partner is US citizen so to avoid foreign buyer stamp tax it will only be me on the title. Therefore, it will only be me on the loan. As I understand it banks will only consider my income to service the loan.

    My question is around the mechanics of this.
    If we have co-mingled finances (eg both US salaries go toward shared US bills) how is it possible to only consider one income when qualifying for an Oz loan?
    How can a bank determine whose income a shared expense (like car insurance) goes against?
    How can they determine whose is the surplus income from which an Oz home loan is serviced if salaries are pooled (because if you accept that expenses are shared then you're really using both incomes to qualify)?
    Are there steps I (we) can take to ensure approval? Should we have our salaries go through separate accounts? I already have my salary split across multiple US accounts by direct deposit.
    The down payment will be 60 to 70% and overall there is a large amount of income, but expenses (US mortgage etc.) are also considerable and if the bank assumed costs to all be mine it might appear as if I don't have enough of a surplus to service Oz loan.
    I earn more, but partner income is also good. Strong employment / salary histories. Have owned Oz properties in the past but do not currently.

    Would appreciate advice from brokers who know about expat home loan qualification. Thanks.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes its possible, they will go on your income
     
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  3. SurfKreeper

    SurfKreeper New Member

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    Thanks. My question is more around how they view our expenses. I can't figure that out.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Cant see an issue there, lots of strong mitigants

    ta
    rolf
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    In the first instance it will be based on your apportionment. They will want to see transaction statements to support this.
     
  6. SurfKreeper

    SurfKreeper New Member

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    Thank you Terryw. So the cleanest way might be to have salaries go through separate accounts and have partner do the heavy lifting on bills so I have a huge surplus each month? Or will they also want to see partner bank accounts even though they will not be on the loan? In sum total we are in great shape.
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Separating finances might make things easier from a lending point of view.