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Australian mortgage

Australian mortgage

Old Dec 12th 2013, 9:25 pm
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Default Australian mortgage

Looking for a bit of advice. My son is married to australian girl and has a resident visa. They want to buy now and have been wondering if there is any benefit in having the mortgage in her name only. Any advice would be appreciated. Thanks.
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Old Dec 12th 2013, 9:30 pm
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Default Re: Australian mortgage

If they both work, then a joint application would give better chances of borrowing more money.
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Old Dec 12th 2013, 9:37 pm
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Default Re: Australian mortgage

Yes they both work and either one can afford the mortgage they want to borrow. Just wondering if ant tax benefits.
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Old Dec 12th 2013, 10:05 pm
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Default Re: Australian mortgage

Originally Posted by nic75 View Post
Yes they both work and either one can afford the mortgage they want to borrow. Just wondering if ant tax benefits.
No tax benefits if they are both normally resident in Australia.

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Old Dec 13th 2013, 2:21 am
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Default Re: Australian mortgage

Originally Posted by nic75 View Post
Yes they both work and either one can afford the mortgage they want to borrow. Just wondering if ant tax benefits.
Nobody gets tax benefits for having a mortgage on their own property.
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Old Dec 13th 2013, 2:47 am
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Default Re: Australian mortgage

Originally Posted by nic75 View Post
Looking for a bit of advice. My son is married to australian girl and has a resident visa. They want to buy now and have been wondering if there is any benefit in having the mortgage in her name only. Any advice would be appreciated. Thanks.
Should they separate then it would make the divorce settlement easier
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Old Dec 13th 2013, 7:57 pm
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Default Re: Australian mortgage

Good one Hino thanks for comments, that's what we thought but we're old enough to remember the good old days of MIDAS in uk when you were given tax relief against you mortgage and just wondered but thanks again.
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Old Dec 14th 2013, 7:43 am
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Default Re: Australian mortgage

there may be advantages of an interest only mortgage with over payments.... financial adviser first port of call buddy.... good luck to them
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Old Dec 14th 2013, 10:34 pm
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Default Re: Australian mortgage

Originally Posted by nic75 View Post
Looking for a bit of advice. My son is married to australian girl and has a resident visa. They want to buy now and have been wondering if there is any benefit in having the mortgage in her name only. Any advice would be appreciated. Thanks.
The only advantage really if they have plans of renting the property out, or for asset protection purposes. If they are going to rent the property out in the future then having in one name can have tax advantages (but requires some crystal balling as to who will be in the higher tax bracket and also whether the property would be negative or positively geared at the time they rent it out).

Asset protection if one party is running a business etc.

Generally, unless clear evidence of income and gearing, you would just do it in 2 names.
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Old Dec 15th 2013, 2:27 am
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Default Re: Australian mortgage

Would she get the first time house buyers allowances? Would he qualify seperately for his own property at a later date

If it were solely in her name how would the property be divided if they split up?
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Old Dec 15th 2013, 6:42 am
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Default Re: Australian mortgage

Whilst we're on the subject of Australian mortgages, I'm selling 2 houses here, so will have $400k as a deposit. Will the bank lend me the other $450k that I need (so a LTV of 53%).

Do I need to be in full-time employment for 6 months first, or are contracts acceptable?

What I'm trying to do is work here for long enough first to be able to buy a place before my wife and children join me.

Thank you.
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Old Dec 15th 2013, 7:00 am
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Default Re: Australian mortgage

Originally Posted by eddie007 View Post
Would she get the first time house buyers allowances? Would he qualify seperately for his own property at a later date

If it were solely in her name how would the property be divided if they split up?
Depends on the state re first home buyer allowances, but general rule is need to be an australian PR. if she is, then yes, would qualify for the grants. note though that this would disqualify your son in future from the grant if they are still together when he buys, as the fhog form is clear that "if you or your spouse" has owned property before, then not entitled to the grant again.

If purchased solely in own name, when split up the general rule is the law of equity would intervene with the principle of the constructive trust. The basic policy is each gets back what they put in. So if they went in 50/50, paid 50/50 on the mortgage etc then in theory would each split the profits on sale. That is, who actually is on the title of the property is largely irrelevant for divorce settlements. It gets complicated if kids are involved etc as then court needs to make an assessment of non-financial contributions to the relationship etc.
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Old Dec 15th 2013, 7:01 am
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Default Re: Australian mortgage

Originally Posted by nexsuperne View Post
Whilst we're on the subject of Australian mortgages, I'm selling 2 houses here, so will have $400k as a deposit. Will the bank lend me the other $450k that I need (so a LTV of 53%).

Do I need to be in full-time employment for 6 months first, or are contracts acceptable?

What I'm trying to do is work here for long enough first to be able to buy a place before my wife and children join me.

Thank you.
I am not sure how anyone can answer the question on behalf of the banks. Will you be in work when you arrive, or looking for work?
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Old Dec 15th 2013, 7:02 am
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Default Re: Australian mortgage

Originally Posted by nexsuperne View Post
Whilst we're on the subject of Australian mortgages, I'm selling 2 houses here, so will have $400k as a deposit. Will the bank lend me the other $450k that I need (so a LTV of 53%).

Do I need to be in full-time employment for 6 months first, or are contracts acceptable?

What I'm trying to do is work here for long enough first to be able to buy a place before my wife and children join me.

Thank you.
with that sort of deposit/equity you will find many banks (not all, but many) will be quite lenient here. The risk to them is extremely low. Many will want to see you in your employment for 3 months or 6 months, or even longer. But some will lend if you can establish good industry employment and basically, they are comfortable your employment is likely to be ongoing.

Basically, with that size deposit - i really wouldnt think you would have too much trouble. We have helped many who have not even arrived in Australia yet with finance to buy based on their new Australian employment contract.
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Old Dec 18th 2013, 10:59 am
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Default Re: Australian mortgage

Originally Posted by Bermudashorts View Post
Nobody gets tax benefits for having a mortgage on their own property.
Unless they rent it out



and live with their parents
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