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I am pretty sure in this case the would be little a non defaulting party could do because they are jointly mortgaging the whole property, not just their individual shares. So this would be no different to any other bank or loan product.

Hi Marty I think it is more a question for the credit team of a bank on whether they want to include a potential liability from a security guarantee. Those with the money make the rules about lending (to a large degree).

I don't know the answer, but would suspect it is correct. If the borrower doesn't pay the loan the security guarantor would have to step in and pay or potentially lose their property. But then again many lenders do not require a serviceability assessment from a guarantor. Its a question...

I don't think this would be different to any other jointly owned property in the longer term. In the very short term it may help party B to stay clean a bit longer though. The bank would take a mortgage over the property itself as security (not just the shares of the property), so it would...

I recall doing the training about the CBA product and there was one thing that was good about it. And, I think, that is if party A were to default on their loan then it won't immediately show up as a default on party B's credit file. This would give party B the opportunity to buy out the share...

They will count the whole loan generally - even guaranteed portion.

Trust is needed to a certain extent, but if spouse each get one property in each name then they are 'even' in a way. If one does a runner, the other still has their own property. It is also possible for the non-owner spouse to lodge a caveat on title to prevent further dealings. But this can...

Around the borrow capacity effects? There is not because if you borrow money you are liable for its return. On a joint loan each borrower is liable for the whole debt, not just their 'half'. But from a tax point of view their income is only the percentage relating to their ownership of the...

Its not really the same. far reaching consequences because A and B will have different incomes, the properties will be of different values and the loans different amounts. Then there is income tax and negative gearing effects on the loans (less of an issue these days) and the non lending side -...

Not only asset protection from loss of control, but there are other issues to consider as well such as asset protection upon bankruptcy, family law separation, incapacity and upon death. Other considerations are tax planning - imagine having the ability to sell a property when one spouse has...

Depends on the situation. It could be a disaster in some instances. Imagine owning in the name of your wife, but she secretly sells the property, borrows against it, or gifts it to the rspca.

Can't get a straighter answer than this.

It would be if JT or TIC. But not if sole.