Go in as first home buyers or bite the bullet and pay Stamp Duty?

My fiancee and I want to buy our first PPOR together. To pay or not to pay SD:

I have 2 IP'S. I already accessed the FHOG several years ago for one of these properties which is now an IP. I have a tidy amount of equity from both IP's that can be used to finance the deposit.

My fiancee has not accessed the FHOG and has not bought property before.

We don't live together and we have queried this with the OOSR and they have advised that my fiancee is able to purchase as a stand-alone buyer without me impacting his access to the FHOG- so he is eligible for it.

We want to buy a house around $450-$500k in Greystanes in Sydney. The banks are willing to throw us a lot of money under both our incomes. They are also happy to lend to my fiancee under his name only with no problem

The problem is, if we want to make the purchase in my fiancees name, the equity needs to be "gifted" to him. According to some mortgage brokers, there are no 100% gift deposit loans out there. I believe he said half of the deposit (if the deposit is 10%) can be a gift. The other half must be savings history. So around $25,000 deposit and $25,000 saved.

What we want to know is- by the time he can save up to show this savings history, it will take us about 8-10 months. We could wait that long, but would the prices have gone up by around $20k by that time anyway- which is how much Stamp duty we would have to pay if we just bit the bullet and bought something now? I am seeing prices go up every day...it scares me that by the time we wait, we will miss out on something nicer, bigger and have to settle for less.

What should we do? Wait and have the house under his name and avoid stamp duty, or just go in as a couple, use my full equity and pay the stamp duty?
 
G'Day Hanging

I think the Broker you spoke to is somewhat confused (read: has no idea!)

Your fiance doesn't need to show Genuine Savings if the loan is not more than 90%LVR

Gift away, me hearty! There is no such limitation that I have yet come across

Cheers
Kristine
 
Wow, that's interesting- we have been told that even if we have 10% deposit, he needs to show genuine savings...if what you have said is true, then then this is super news!

Do you know which lenders (or is it all of them!?!?) are willing to lend on 10%+ deposit without genuine savings??
 
Quite a few

There are a small number of lenders which have an 85%LVR threshold, but most do not apply the Genuine Savings requirement until >90%LVR, will look primarily at serviceability and be not at all that fussed with regards to source of funds, provide that it is a legitimate source and properly documented

Cheers
 
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