Hi Guys,
I am trying to work out the best possible options when transferring a property from my Mother-in-Law to me. I have thought of a few options below. Please comments on the options whether its good or bad. Ideally I would like as much liquid cash as possible so that I could utilise it for future use.
The property currently has 200k loan owing. I have the money in cash to pay off the loan if I need to.
Option 1
Apply for homeloan for 200k to pay off the loan owing and apply to increase my loan amount after the property is under my name.
Option 2
Apply homeloan 400k - 200k goes to pay off the loan and 200k goes to mother in law and transfer it back to me. With this option I am not sure whether or not, at settlement, the bank could just hand over the cheque to me.
Option 3
Pay off the loan and obtain a home loan after the property is transferred into my name.
I am trying to work out the best possible options when transferring a property from my Mother-in-Law to me. I have thought of a few options below. Please comments on the options whether its good or bad. Ideally I would like as much liquid cash as possible so that I could utilise it for future use.
The property currently has 200k loan owing. I have the money in cash to pay off the loan if I need to.
Option 1
Apply for homeloan for 200k to pay off the loan owing and apply to increase my loan amount after the property is under my name.
Option 2
Apply homeloan 400k - 200k goes to pay off the loan and 200k goes to mother in law and transfer it back to me. With this option I am not sure whether or not, at settlement, the bank could just hand over the cheque to me.
Option 3
Pay off the loan and obtain a home loan after the property is transferred into my name.