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Home loan application question

Discussion in 'Property Finance' started by teetotal, 7th Nov, 2015.

  1. teetotal

    teetotal Well-Known Member

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    Hi Guys,

    I have question regarding home loan applications.

    I am thinking about purchasing a property as a single owner but i want to apply for the home loan as a joint application with my wife. Does anyone know if this is possible or allowed by the lenders ?

    Thanks in advance.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes it is possible. But why would you want to do that?

    Exposes the wife so your asset protection level is halved.

    Also hurts her future borrowing capacity
     
    Greyghost and Perthguy like this.
  3. teetotal

    teetotal Well-Known Member

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    Thanks Terry.
    Actually, i have already signed up for an Off the plan purchase under my name only.
    I was thinking at the time that as my income is higher, it might be a good idea for tax purposes etc.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Tax deductibility is determined by ownership, not loans. If you are 100% owner than your wife cannot claim anything even if she was on the loan - whether paying the interest or not.
     
  5. teetotal

    teetotal Well-Known Member

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    Actually i was planning this way to claim 100% deductions from this property on my income as we'll be paying off most of the loan from my income but If i am in joint ownership then i can only claim 50% of deductions. Don't know if it is a good idea, will find out o_O
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    It doesn't matter where you pay the loan from, but who is on title. So if you are both tenants in common 50/50 or Joint Tenants then each can claim 50% of interest and other costs. But if you own 80% and wife 20% then you can claim 80% and her 20%.
     
  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    The only reason you would use your wife on the loans is if you need her income for servicing purposes. Often this will be the case if you already have existing lending together.
     
  8. Redom

    Redom Mortgage Broker Business Member

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    Yes can be done with just about all lenders for spousal relationships - usually done for servicing purposes - the extra income can make a pretty big difference to borrowing power.

    E.g single married applicant on 70k will be able to afford a lot less than both of you on 140k.

    Cheers,
    Redom
     
  9. Mick C

    Mick C Well-Known Member

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    1. You can apply for the loan in join names ( but terry covered an important point about asset protection and serviceability

    2. Lastly as per Terry's post Tax deductibility is determined by ownership, not loans. So Unless you can't "service" the loan i can't see why you would want to add your wife on...

    Regards
     
  10. teetotal

    teetotal Well-Known Member

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    Thats right Jess, Its basically for serviceability purposes. At the same time me being at higher income can use 100% deductions on my income as @Terry_w mentioned.
     
  11. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Yep! So you can put both your names on the loan even if it's just you on the title.