splitting a mortgage, deposit amount

Discussion in 'Loans & Mortgage Brokers' started by jinx77, 26th Jul, 2019.

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  1. jinx77

    jinx77 Well-Known Member

    Joined:
    8th May, 2019
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    Location:
    Thornbury
    My partner and I want to buy our first home 50/50. We’ve decided that we want seperate loans for a number of reasons. I have a lot of money saved and easily can afford to pay a 20% deposit for the property upfront. But my partner has no money saved for a deposit, LMI or any other initial costs that come with taking out a mortgage.

    Our hope is that I can cover all the initial costs and he can contribute equally to the repayments.

    Is my partner likely to be rejected for a loan even though I have enough savings to cover the 20% deposit for the property?

    If the bank require him to pay LMI, does it have to be paid at the start of the mortgage as one large sum or are LMIs paid off gradually throughout the duration of the loan?
     
    Last edited: 26th Jul, 2019
    jinx77, 26th Jul, 2019
    #1
  2. thatbum

    thatbum Well-Known Member

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    Perth, WA
    What's the goal here with separate loans? Why would he have to pay LMI?
     
    thatbum, 27th Jul, 2019
    #2
  3. tobe

    tobe Well-Known Member

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    Location:
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    You are jointly and severally liable. While with some lenders the loan could be in seperate names, you would need to guarantee the others borrowings.

    Write up the plan and the exit agreement before you start, then get a joint loan in two portions.

    There’s no issue with being rejected on your partners savings. Your savings meet the criteria.
     
    tobe, 27th Jul, 2019
    #3