Buying in son's name, loan in mine?

[louiselovley]

Hi We want to buy a property in my son's name but we take out the mortgage in my name. He is a first home owner in NSW so can we do this so that he is eligible for stamp duty exemption and grant?

 

[travelbug]

It's up to the bank. I don't think they'd like it as the loan is yours yet the collateral (the house) is your sons.

Are you doing this just to get the FHOG? Who'll be living in it? So you are gifting the house to your son?

 

[Terryw]

If your son will be acting as trustee for you then he cannot get the grant.

If he is really buying in his own right then you would have to be on title to get on the loan, but he would also be on the loan too. This would also prevent him getting the grant. I don't think you will find a lender who would let you take the loan without being on title.

If he gets the loan in his own name with help from you, may one of those family guarantee loans then it may be possible to have him only on the loan and get the grant.

It may also be possible for him to buy in his name and you do lend money to him (eg from LOC) for the purchase and have the property unencumbered.

 

[Rolf Latham]

Hi ouise

Under the NCCP regs, if your son cant afford the loan, then a servicing guarantee will generally not be allowed.

Does your son have insufficient income ?

ta
rolf

 

[Aaron_C]

Generally as Terry has said all borrowers must be on title before any loan is given. There are exceptions but as a general rule that is the case for all banks. You might get the deal over the line though if his income is OK and you can provide your own security as collateral for the bank.

 

[louiselovley]

Thanks all so much for your input. This makes perfect sense and was my own intuitive conclusion.