Personal loan for stamp duty? Already gone unconditional on the house with lending approved and can

So how would that work? Do I need permission from the bank to not be on the title? My broker just said the bank won't care who is on the title AFTER settlement but in order for the bank to settle I will need to have all the duties paid, is this correct?

Also, I asked the bank if we could do tenants in common and they said yes but I would need to re-submit my loan application which is probably fine but would have to get an extension with the vendor.

FYI: My visa is a 457 so my choice of lenders was pretty slim.

 

To save yourself money you should probably ask your lender first if it is possible. Then if it is possible as the solicitor
- the effects on stamp duty
- the effects on the foreign acquisitions and take overs act.

Don't take credit advice from a paralegal or legal advice.

What state is the property located in?

 

Your solicitor doesnt know everything about everything. Why ask a plumber about lights?

 

A bizarre comment from a broker!

You cannot just change legal ownership after settlement. they would have a mortgage on title so this would mean you need their consent which would mean a new loan application.

Duty will need to be paid before settlement.

You will need to ask the bank if they will permit you not being on title. If loan documents have been issued they will need to be redone.

 

get a new solicitor.

 

OK - it looks like the options going forward are:

1 - Put partner on title only - seek bank approval for this (check with solicitor that this has the desired effect on duty (reducing it)

2 - do tenants in common 1/99% - this will require resubmitting loan application (as per banks advice today) - this also need FIRB approval, FIRB have said (I called them) that it's a criminal offence to go unconditional on this sort of structure without approval first however joint tenants is exempt from needing approval. I'd need a FIRB clause on my conditions in order for this to be ok. The vendor will likely not agree to this.

3- Do nothing and find the extra money we need to settle from somewhere else - we meet the minimum 5% genuine savings rule so maybe a personal loan could be used to plug the gap which stands at around $15,000 after some very aggressive budgeting and car sale.

I'm annoyed that my solicitor said no to the tenants in common structure first and is now saying it's ok. We could have had this sorted during the loan application stage and we'd be good now...

Property is in QLD and is an existing dwelling.

 

Didn't the solicitor also give negligent advice on the stamp duty?

 

Yes, our options are to sue. That sounds expensive and I'm not sure we'd win though. Also, we'd still need to pay the duty before we win anything in court.

 

But why are you trusting still?

Unlikely it would need to go to court.

 

Just so you know, my case was slightly different then, because my partner was on the first stage of a spouse visa (820 Temporary visa), which according to my mortgage broker is looked at more favourably by banks than other temporary visas such as 457.

 

Just had the awkward conversation with the lawyer telling him I need some sort of remedy to this.

He basically said don't worry about anything that's already happened - on day of settlement he will just write into the contract / paperwork a 1/99% tenants in common ownership structure and the bank won't care as the mortgage is on the whole property and the mortgage agreement doesn't state ownership structure.

He said I just need to focus on getting FIRB approval, don't worry that you need approval before going unconditional because I went unconditional on the understanding that we will be joint tenants and if we don't get approval we just keep on that track but if we do get approval then we can show the exemption certificate should we ever have to.

He said I don't need to re-submit my loan application as the bank just simply won't care on the day of settlement however he chooses to specify the ownership on the paperwork.

 

Get a second opinion on this would be a good idea.

 

Some banks will not allow 99/1 it would need to be 10/90


Who is the lender?

 

Even if they prefer a bigger percentage that should be ok at 10%. As long as the lawyer is correct in saying that we don't need to reapply and the bank will still be happy to settle with a switch to tenants in common on settlement day from joint tenants then we should be fine.

 

Does he have a credit licence?

 

Not sure; I would assume not.

 

So your taking there word on what the bank will agree ro because......?

 

Probably best to ask your broker or the bank in that case. Changing % can result in a rework.

 

Probably best to ask your broker or the bank in that case. Changing % can result in a rework.

 

Spoke to broker - she said her relationship manager said it would probably be a rework, lawyer said that's not correct and that I shouldn't worry about it as it's not a condition of the lending. He doubly assured me to not worry about it as it's standard practice to alter these things on settlement day and the bank won't care.

I might just resubmit the loan application anyway to be totally sure but the risk I have is the bank refusing the lending second time around with the new structure...