Home value is larger than the loan

I am Olivia and originally from Sweden. But moved to Australia in 2018.

I live with my parents and the current house we live belongs to my dad. He has written his last will in such a way that it would belong to me. Since as a family, we have paid 25% of the loan and there is only $300000 to be paid.

But the only issue is I don't have a constant income since I only do uber eats and earn about $800 a week after deductions.

1. The current house value is $550000
2. I will only have to get a loan for $300000

Since the house value is significantly higher than the loan amount, would the bank allow me to refinance the house not paying much attention to my job status? Because if I couldn't pay off the loan, they can confiscate my home.

Thanks

 

Having equity is important, but it's only one part of the equation. You need to be earning enough to be able to afford the loan. If you can't afford the repayments, then the bank will not lend you money. It doesn't matter how much equity you have, equity is not the same as cash flow.

Also Uber Eats delivery is a self employed role. Even if you do make good money from it, you will need to be doing it for at least two years under an ABN with supporting tax returns for banks to consider lending you money.

Honestly I think the gig economy is a bit of a scam. Most people don't make as much as they think they do (when the true cost is considered such as car replacement). The only ones making money out of this are the head companies (Uber).

 

no.

 

Anyway, you don't own the house, your father does.

 

You could contribute to the loan, and who knows, it might be paid off by the time your father passes.

 

However if Dad dies and nobody tells the bank and the loan repaymnets are met they may never notice. And title would be in dads name still. You own nothing until your receive an inheritance. No lender will consider that property as yours until then.

Tip - Life insurance for Dads life of $300K

 

Thanks for the answers. What would happen in an event of my dad's demise?

 

You might have to sell the property if the loan cannot be paid out and if you cannot qualify for a loan.

Legal Tip 74: Loans Death and Inheritance Legal Tip 74: Loans Death and Inheritance

 

Equity position is great for you.

Getting the loan really depends on how much you report and if you have 2 years of tax returns.