Joint loan applications

Discussion in 'Loans & Mortgage Brokers' started by Surfboy83, 5th Jul, 2017.

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  1. Surfboy83

    Surfboy83 Member

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    21st Jan, 2017
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    Location:
    Newcastle
    Good evening,

    With joint loan applications, how are they assessed?

    I earn 150K, my partner is self employed and has only just started trading earning 40K this past financial year.

    Looking at 600K house cost with 20% total deposit (10% from each party).

    We have no other debt or credit cards.

    My question is, will the lender combine our two incomes and assess the joint loan application on the basis of our total combined income? Or do lenders look at each individual's income, could my partner be knocked back because they earn less??

    Many thanks
     
  2. tobe

    tobe Well-Known Member

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    They take your joint net income into account.

    It might be worthwhile getting your 17 tax returns done, and see what they look like.
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    They'll look at both incomes but on the surface - your borrowing capacity looks quite strong and you've got a 20% deposit so I don't think you'll have much to worry about.

    Cheers

    Jamie
     
  4. Terry_w

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

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    50% of spouses do earn less than the other.
     
    Tom Simpson likes this.
  5. Tom Simpson

    Tom Simpson Well-Known Member

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    Subiaco
    They'll combine your income and assess household debt and household living expenses.

    CBA have announced recently they'll be assessing credit cards on an individual basis AFTER the loan application rather than their previous practice of approving during the process based upon household income and expenses.

    We might see more of this as most banks have the same practice of approving during the application process.