Finance with one owner and two borrowers

Discussion in 'Loans & Mortgage Brokers' started by Ator, 10th Mar, 2020.

Join Australia's most dynamic and respected property investment community
  1. Ator

    Ator Member

    Joined:
    21st Jan, 2020
    Posts:
    8
    Location:
    Sydney
    How likely is it to get finance when only one person of a couple has a property in their name but has a low income (too low to service the loan by themselves) and the other person has no property but has a decent income?
     
  2. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    35,834
    Location:
    Australia wide
    It depends how it is set up, but shouldn't be hard. One spouse can use the security of the other, they could be joint borrowers, one borrow and one guarantor etc etc.
     
    Lindsay_W likes this.
  3. Property Twins

    Property Twins Mortgage Brokers, Buyers Agents & Mentors Business Member

    Joined:
    31st May, 2016
    Posts:
    2,720
    Location:
    Australia
    When you say couple - do you mean de facto or married?

    You will need to cover off on specific lender requirements for 'substantial benefit' (Banking Code of Conduct), whereby the person who is not on title will need to understand the risks associated with this.
     
  4. Redom

    Redom Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,244
    Location:
    Sydney (Australia Wide)
    If the two people are not spouses, this is very hard. Banks don't allow this.

    If its spouses, lots of options and banks are comfortable with it. Recently there's a few more minor hoops to jump through and some banks prescribe how it should be set up, but plenty of options.