Parent on a loan application

My partner and I are looking to buy our first PPOR. I have quite high debt as I currently have a few IP.

So banks will really only be looking at my partners income. Would it be possible to add a parent who is 62 on the mortgage to boost borrowing capacity?
3 people on the loan and 2 on the title.

cheers,
The Don

 

No

 

could you please go into detail? Why no? Age, parents on a loan? Cheers

 

Only legal owners could go on the loan, except for spouses and trust like situations, income guarantees are not allowed.

 

You can only borrow jointly without one person on the title when there's a clear benefit to the person who's not on the title. Spouces are fine. Banks don't recognise parents having a clear benefit if they're not on the title.

Age might also be a challenge, but that depends on the bigger picture.

 

So if they were on the title it shouldn’t be an issue ?

 

They could be borrowers or guarantors in that case - which doesn't necessarily mean there won't be issues

 

No such thing as a "servicing guarantor" anymore as there's no real benefit for them taking on the debt.

Have you tried smaller lenders?

Resimac, firstmac or pepper?

 

The issue is "substantial benefit" as in what benefit does the parent have on going onto the loan when they have no ownership stake?

If all 3 are on the title then would need to be able to articulate the exit plan for the parent as they are approaching retirement age for most lenders (and already past that mark for many).

Just keep in mind that in future if all 3 are on the loan/title this may create further complications.

Non-bank lenders Tony has pointed out might be a better option to consider.

 

Thanks for your responses all.
The main reason I considered going with a big 4 is because:
*my partner is on a 820 partner visa.
*I have Just got a part time job (1month in) and I know ANZ accept secondary income within 3 months and Liberty is 12 months.
* Ability to do guarantor loan as we don’t have a20% deposit

Would Resimac, firstmac or pepper do lmi loans?
Cheers

 

What’s the highest lvr loan possible?

 

Double stamp duty potentially!

 

105%

 

With those lower tier lenders?

With those lower tier lenders?

 

The guarantor piece might be a challenge if you have existing properties... at a principal level security guarantor is for those who are looking to get into the market with their first property and don't have the deposit together to get there yet.

 

against a single security 95%

 

Your best bet is to use a decent mortgage broker

 

Who do you recommend?

 

Any of those lenders accept secondary part time income where employment started 3 months ago?
I have recently acquired a second job making an extra 20k a year.

 

I don't know off the top of my head. This is what you need to engage a broker for