Joint tenants downsides?

I am a GP and my partner is a share trader with no stable income. We are in the process of buying our first house, currently preparing to apply for a mortgage pre-approval.

I would like to ask the following, please.

1- Considering my partner's erratic income history, will it be a more streamlined loan application if I choose to be the only one on the title?

2- If we hold the title as joint tenants, would it be more difficult - with more hoops to jump through - to refinance the loan in the future? (will probably be wanting to refinance in three years)

We live in QLD, in our mid 30's, have no kids and will not have any, if that helps.

Any input is appreciated.

 

This is something you should get specific legal advice on. It seems you are talking about whether to buy jointly or just in your name. There are 2 ways to jointly hold an asset, as either tenants in common or joint tenants. so you might be confusing terminology.
1. Generally if the loan can service in one name then it can service in both names
2. as above.
seek credit advice on that aspect.

The situation where it won't be good is where the spouse is making a loss trading shares or has some sort of credit blemish.

 

Thanks Terry,

Sorry one more question!

If the title to a property is held by one person, how difficult/expensive it would be to add someone else( e.g. spouse) to the title later down the track, either as tenants in common or joint tenancy?

Cheers

 

You would need to pay
a) stamp duty (generally)
b) CGT unless an exemption applies
c) conveyancing fees
d) discharge of mortgages
e) new loan app fees etc.

 

If you were in NSW the duty might be avoidable if you later transfer 50% (no more, no less) at a time while your occupy the property. It may allow a loan refresh and no CGT if its always been your home. So your spouse could share 50% of net rent and borrow $$$ and any increased equity is a debt recycle used (by you) to buy your next home.
In QLD its a total fail and its dutiable and the concession doesnt exist.

 

Or you could later get divorced and transfer title to partner and not incur stamps (as part of settlement).......
I have had partner listed as tenants in common, but applied for the loan to purchase in my name only (don't know if the bank knows or if they even care).

 

Where there are 2 owners all must be on the loan, or one on the loan and the other as a guarantor. Both owners need to give a mortgage.