2 Finance Questions.

[albanga]

Hey All,
I just had 2 questions I was hoping to clarify.

1 - In a joint ownership how do the banks view it if one person has great credit and the other not so good. I for example have perfect credit and my wife has a heap of enquiries and 1 default. Would they be lenient on the bad credit as it also involves my good credit? I would never want to use say a pepper because of the high %. But my serviceability would be around 450 and my wife similar.

2 - I have read all about CC and why it should be avoided but let us say you own 4 IP's and you want to buy another requiring a 40k deposit. Each of your 4 IP's has 10k equity to draw. How is this done whilst avoiding CC?

 

[jonmardell]

they will look at the overall strength of the deal, how much is the default? Are you borrowing 80% or below?

 

[albanga]

they will look at the overall strength of the deal, how much is the default? Are you borrowing 80% or below?

Hey jonmardell,
This is just a question at this stage as I am not yet looking but more future planning. My wife has about 30 enquiries and the default is paid with the amount $220.

 

[Terry_w]

Hey All,
I just had 2 questions I was hoping to clarify.

1 - In a joint ownership how do the banks view it if one person has great credit and the other not so good. I for example have perfect credit and my wife has a heap of enquiries and 1 default. Would they be lenient on the bad credit as it also involves my good credit? I would never want to use say a pepper because of the high %. But my serviceability would be around 450 and my wife similar.

2 - I have read all about CC and why it should be avoided but let us say you own 4 IP's and you want to buy another requiring a 40k deposit. Each of your 4 IP's has 10k equity to draw. How is this done whilst avoiding CC?

1. Yes it will affect the deal, just as if the bad credit person was on their own.

2. Why would you want to access 10k equity. It is way too small. To avoid cross collateralising securities you would have to take 4 separate loans.

 

[Jamie M]

If the deal services without your wife's income them I'd look at leaving her off the application. Otherwise use a lender that doesn't credit score and if lmi is involved, holds a DUA.

Cheers

Jamie

 

[Rolf Latham]

sub 500 to 1000 telco or utilities default can be worked through with many lenders.

Jamie'scomment about LMI DUA is pretty important - the lender needs to make the call on the insurance cover, not the provider.

This way also reduces the credit enquiry to 1, instead of 2 per

If your score is bodgy, and you can only draw 10 k per IP, and all 4 props are with the same lender, then cross coll of the ONE 40 k loan for a little while may be an acceptable risk, vs frying your file with 4 enquiries, remembering you will need a 5th at least to buy something...........

ta
rolf

 

[albanga]

Hey Terry,
I am not planning on doing this, just really interested in how lending works in certain situations. I know you wouldn't do this BUT if you did, are you saying you would arrange 4 seperate LOC's with 10K from each IP? If so do you then give the vendor 4 seperate cheques for the deposit?

Thanks for clarifying the credit guys, I thought this was the case. It does seem ridiculous to me though. My wife admittedly was just plain stupid before she met me 4 years ago but since has made about 2 enquiries and no defaults. She has been in a good job for 5 years on a 75k package. Now I do understand why the lenders would be conservative if she was applying on her own but one would think her past 4 years good credit combined with my blemish free credit and good salary would mean that it would not be an issue

 

[Jamie M]

My wife admittedly was just plain stupid before she met me 4 years ago

haha - clear your browser history!

Cheers

Jamie

 

[Terry_w]

Hey Terry,
I am not planning on doing this, just really interested in how lending works in certain situations. I know you wouldn't do this BUT if you did, are you saying you would arrange 4 seperate LOC's with 10K from each IP? If so do you then give the vendor 4 seperate cheques for the deposit?

Thanks for clarifying the credit guys, I thought this was the case. It does seem ridiculous to me though. My wife admittedly was just plain stupid before she met me 4 years ago but since has made about 2 enquiries and no defaults. She has been in a good job for 5 years on a 75k package. Now I do understand why the lenders would be conservative if she was applying on her own but one would think her past 4 years good credit combined with my blemish free credit and good salary would mean that it would not be an issue

You would have to get 4 separate locs if you wanted to avoid CC and tax issues. Yes 4 separate transfers or cheques

Probably wouldnt be an issue on the wife side of things.

 

[albanga]

Like always thanks gentleman! All much clearer.

Jamie I think I might be safe with the wife reading the finance section of the somersoft forum. Haha

 

[Jamie M]

Jamie I think I might be safe with the wife reading the finance section of the somersoft forum. Haha

lol - she's probably on a different forum saying "he was just plain stupid before he met me 4 years ago"

Cheers

Jamie

 

[Coota9]

Gents,

I believe if there was a "buying only section" that's where most wife's would be..

 

[albanga]

Gents,

I believe if there was a "buying only section" that's where most wife's would be..

Hahaha I know that's where mine would be and her posts would read "He did the sums and it was $800 a week negatively geared but you should have seen the kitchen and WIR".

Now Jamie if she reads it I'm in trouble! Most blokes need to clear their history for other activities, not bagging the wife on somersoft. Haha