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Family pledge loan

Discussion in 'Property Finance' started by ej89, 3rd Aug, 2015.

  1. ej89

    ej89 Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    688
    Location:
    Sydney.
    Hey guys.
    Have any changes been made to the family pledge option? Also, will borrowing 105% right now affect an OTP purchase in 6 months if I have a deposit for that and don't plan to live in either?

    e.g. looking at family pledging a unit at 280k and then using my 10% deposit for my H&L that registers in June 2016 (land registers and then I build).

    Work in Allied health so should be able to get 90% loan no LMI. 70k a year. Should be up to around 85k by June next year.

    Or should I sit tight and save as much money in case something happens and I can no longer get servicing for my H&L?
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,104
    Location:
    Melbourne, Nationwide
    Family pledge loans haven't been affected specifically. Many of the policy changes will have impacted people's general lending eligibility which also includes family pledge scenarios.

    Any loan you take today will have an affect any future applications. How much effect depends on numerous variables. You need to discuss specific scenarios and numbers with a broker to properly understand the outcomes.

    What is your actual role in Allied Health? Doctors are required to be members of the AMA to be eligible for LMI waivers, the employer isn't relevant.
     
  3. ej89

    ej89 Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    688
    Location:
    Sydney.
    Exercise Physiologist. I spoke to Medfin finance who are linked to NAB health and they have agreed to get me the 90% loan due to the fact most of our loans for business are through them..

    Do you know if doing the family pledge affects my families borrowing capacity due to their equity acting as security pretty much?
     
  4. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    893
    Location:
    Melbourne
    Yes it does effect the other parties. There is less equity to use as well as less income for serviceability.