Serviceability ppor upgrade

I was hoping someone might be able to point me in the right direction of a lender who will look at using two incomes with only one name on title- preferably with a relocation or bridging option.
My current situation is I own my PPOR outright ( Central Coast townhouse value approx 700) and I really want to upgrade to a freestanding house so the kids can have a yard and a dog! ( approx value 900-1000k)
I have two investment properties-
2 bedroom in Balgowlah- current loan 2.69 fixed for another year with Nab (balance 455k value approx 800k) Nab couldn’t comprehend that I owned the PPOr outright and kept calculating that I would need ro service peak debt of the value of my property plus the value of the new property even though I explained I had no mortgage owing on my PPor! Is this correct or was the lender I spoke to really confused?

I also have another townhouse in Raymond Terrace- 218k balance- real estate valued as 400-450- I would say probably closer to 400k. I fixed this 5 years ago with teachers mutual at 4.91 per cent- due to expire May 2022.

I am currently working part time- gross salary 89000 for 0.8 load as a teacher and I have two children aged 1 and 3 years. My partner earns 61000 pa and has no debts nor assets apart from HECS. As this is a second relationship and I purchased my PPoR independently I would really prefer to keep the title and loan in my name only ( we both have older children so I would like to keep this part of our finances separately)

My partner has no issue with his income being used- he gives me 1000 a fortnight for our expenses which is all he can manage on his income and I manage all our outgoings.

I have contacted a broker and ST George independently and have been told that I can only borrow a maximum of 50000- which isn’t enough to even cover the stamp duty on a new place. Broker said no one will take partners income into account so I am responsible for all living expenses based on my income.

I have thought about many scenarios trying to make this work- 1. Sell raymond terrace - access the equity ( not my preferred option because I don’t want to trigger cgt and increase my income when we have to pay childcare for two children so won’t be eligible for any subsidy)
2. Refinance raymond terrace to a lower rate? Will this increase my borrowing capacity by much? Could I possible use the equity in this property to support the new purchase?

3. Find a lender who will count my partners income but allow me to borrow in my name only.
We would prefer to purchase first as trying to present property for sale with two toddlers sounds like too much work for me- I would rather find a new place and then put property on market once we have moved and it can be staged.

If I kept my ppor- the approx rent would be 600 per week- but I don’t think I have any chance of being able to use the equity for a new purchase if they won’t even lend me 200!

I am also open to purchasing a property with a granny flat - initial cost seems to be about 1 million for a dual income property with transalpine of about 400 dollars a week on the granny flat? Is this a better option to increase servicability?

I find it very difficult to understand why I can’t access the additional 200k- 250k needed especially when rates are so low. At one stage I owned 4 investment properties (2015) and I was a single parent on a much lower salary than now!
if anyone with experience could help me run some possible scenarios which would help me into my dream home I would be very grateful!

 

Why don't you engaged in someone's services where they can do servicing scenarios with multiple lenders for you? As it will be easier then you going through different lenders yourself trying to find a solution.

But yes refinancing your property to a lower rate and stretching over 30 years will help out with borrowing capacity.

Don't think anyone will allow you to use your partners income for servicing but not included into the loan as this won't be a guaranteed income in the event you guys aren't together anymore.

 

If you're a legally recognised couple, this is easy (subject to regular lending criteria).

If not a couple then both people must be on the title.

 

is your spouse willing to go on the loan (not the mortgage)? If so you should be right to have both incomes included. NAB will even allow this. They would need to be a co-borrower or a guarantor.

Note that this would have family law and estate planning implications though.

 

Thank you Tony!
I think I will need to try a different broker- the broker told me that it was all definitely not possible!

 

Yes he is definitely willing to be on the loan- has no issues with that and I don’t mind that either, it was more that I’ve been told that he must go on the title ( this was NAB) I wanted to avoid this for estate planning purposes and I also know that I could easily service a loan of 200k on my income alone- however, without his income and with two children they said my living expenses were too high. I will try to look for other options.

 

Yes we definitely are a couple ( would have been married had it not been for COVID and our two youngest are ours together!)
Thanks so much Peter- you give me hope

 

If his welling to be on the loan then it should be ok.

However there is 1 or 2 banks that won't allow this loan type if he does not have any title ownership.

 

No need for him to go on title