does ?and/or nominee' affect mortgage application?

[devjay]

I have signed a contract last week with "my name and/or nominee".

I want to nominate both my son and his partner to be added to the title.

Will the bank object to the nomination if I am the sole applicant for the home loan? or do them have to been add to the mortgage application as well?

My broker has told me that all of the persons that are going on the title needs to be included in the application.

Thanks in advance for any information

 

[Corey Batt]

Your broker is correct. In doing so all applicants will also be jointly and severally liable for the debt, which may impact on your sons finances if he's looking to purchase other property.

Is there any reason why you don't want to put your son and his partner on the loan?

 

[Peter_Tersteeg]

A nominee clause is quite common, but the bank wants everyone on the title of the property to be on the loan application.

The transfer of land document states who will be on the title, so when there's a nominee clause the bank gets a copy of this from your conveyancer (along with some other paperwork). You can't hide from the bank who will end up owning the property.

 

[devjay]

No particular reason, I am buying this property for them so would like to have them included on the tittle.

Do I have to do the nomination document first before adding their name to the loan application?

Thanks

 

[Terry_w]

I suggest you get legal advice (from a lawyer!) as there are a whole host of issues you are not aware of.

 

[Rolf Latham]

No particular reason, I am buying this property for them so would like to have them included on the tittle.

Do I have to do the nomination document first before adding their name to the loan application?

Thanks

yes, they need to have a legal entitlement to a part of the property if each of them will then be liable for the entire loan.

Note that for any future finance application, most lenders will consider them to hold the FULL loan, but be only entitled to their portion of the rent.

This will have an impact on their borrow capacity in the future in most cases.

ta
rolf

 

[scha9799]

I think stamp duty issue will be taking into consideration.

If your son and his partner are the first home buyer, then the potential benefit for the first home buyer grant or stamp duty concession maybe disappear. I am not sure.

As Terry said maybe talk to a solicitor see if there is any potential issue need to be aware of.

Good luck and let us know how you go

 

[albanga]

I think stamp duty issue will be taking into consideration.

If your son and his partner are the first home buyer, then the potential benefit for the first home buyer grant or stamp duty concession maybe disappear. I am not sure.

As Terry said maybe talk to a solicitor see if there is any potential issue need to be aware of.

Good luck and let us know how you go

This is a good point as well. I purchased my first home with my brother who had already claimed the FHOG and as a result I could no longer claim this.
I was aware of this at the time and weighed up getting into the market when I did and not paying LMI which far outweighed the benefit of FHOG but it's still an important consideration.