Just purchased first IP, where to next?

Given the loan is about 60% lvr, single name loan but joint ownership.... any mortgage broker think theres a guarantee in the mortgage docs?

 

Banks don't lend money for property purchase with security - which is usually a mortgage over the property being purchased.

If you are both legal owners you would have both had to give a mortgage and this would mean you are either on the loan or a guarantor.

This is very important stuff - something you should be fully aware of as it will effect your future ability to borrow and invest.

I would recommend digging out the loan documents and verifying this.

t will also be important for determining deductibility of interest and who can claim what.

 

There is either
a) a guarantee, or
b) he is a borrower

or

c) he is not a owner of the property

 

So do you think it would be more beneficial for me to be on the loan contract as well? All of the documentation that we have signed through our conveyancer and the contract have us down as 50/50 owners of the house.

 

you can't be not on the loan if you are an owner.

 

Probably a good idea to read the loan document very very carefully. But then, do you know what to look for?

 

And before you say it doesnt matter because as brothers we know its 50/50, what happens in divorce and death situations?

 

We both signed a document through our conveyancer stating that we are joint tenants. We have 50/50 ownership, and if one of us dies, our ownership goes to our own beneficiaries.

 

Anyway, I will call the bank today to confirm the status.

 

If you are joint tenants if one of you dies the property goes to the survivor automatically

 

Sorry my mistake. We are tennants in common.

 

Did you also prepare and sign separate wills? Wills can be made ineffective by marriage. The family court has further powers.

it seems unlikely that your brother would qualify for a loan for about 60% lvr if he only owns 50%.

 

I've spoken to both my conveyancer and bank today who both said that us being 50/50 owners on the title while only him being on the loan won't be an issue.

 

The question is whether you will be assessed as responsible for the loan as well. That will impact your future borrowings.

 

Wonder if therell be a post in a few months where the op has bought a second place by cross colling.

 

That is very unusual.
Will you be using this property as security?

 

Is there anything in the loan document that you have to sign?

 

They only purchased a few days ago. I suspect OP hasn't seen any loan documents yet.

Did you consult a solicitor for legal advice, not the conveyancer and not the real estate agent.

Did you read and understand the recent threads by persons asking about buying a property with a friend or relative?