Adding name to title/loan. Service-ability query.

[want2bewealthy]

Firstly, If I wished to add my (soon to be) wife's name to our PPOR loan, is this possible because it's our PPOR?

Secondly, can I do the same with the actual title of the property? Free of charge (no stamp duty in this instance?)

And thirdly, will this increase my personal service-ability criterea in the eyes of the banks?

Thanks guys.

 

[tobe]

Yes, the lender will most likely need you and your wife to complete a new application, with payslips etc.

Yes, the so called love and affection rule exempts transfers of property between spouses

No.you are jointly and severally liable for the debt, having your wife go halves doesnt help you at all, and brings her borowing capacity down.

 

[want2bewealthy]

Hmmmm, Thanks Tobe.

Thats all I need to know

 

[tobe]

There are limited exceptions to that third one, with a very small number of lenders, if the deal is under 80%, and the moons are aligned...

Perhaps buy the next property in your wifes name, or lodge a post nup with a solicitor setting out how you both have an interest in the house?

 

[Brett IP]

I just did exactly this. Tobe is correct.

In my situation the bank just needed advice from the solicitor.

No stamp duty payable, just a $500 fee (well that was my solicitors fees all up), but you must remain there as your principal place of residence for the next 6 months.

If your wife earns a wage you will now have a greater borrowing capacity "jointly" as you have two incomes, dependant on other loans etc.