Urgent, Please HELP!!!

[sk280]

Hello All,

This is urgent. I have a signed a contract and paid a holding deposit for a property (PPOR) over the weekend. The cooling off period starts today and ends this Friday.

My wife and I signed on the contract as Joint Applicants. Unfortunately, my pre-approved loan with Colonial (CBA) has only my name as an applicant. When I asked my Mortgage Broker about adding my wife's name to the loan application, he says that would mean a new loan application along with new credit checks and would easily take up to two weeks!

What is the best course of action to ensure that we buy our PPOR in both of our names and also ensure we do this before the cooling off period ends. Unfortunately, buying it only in my name is not an option we have for various reasons.

Please reply/PM with your suggestions.

Thanks,
SK

 

[alexlee]

I thought you could buy in both names but have the mortgage just coming from one person, especially if it's husband and wife.
Alex

 

[sk280]

Thanks for your reply Alex.

Exactly, I thought the same too, but my mortgage broker says different. How can I confirm this? What other options do I have?

 

[skater]

I thought you could buy in both names but have the mortgage just coming from one person, especially if it's husband and wife.
Alex

My first home was just in my name, but when we refinanced the new loan was in both names. Like Alex, I think you will find it won't matter, but speak to your Morgage Broker (or the Bank) just to make sure.

 

[Aaron Sice]

how does your broker stuff that one up?

i would imagine they would take your wife as a dependant then, and if she earns an income then surely there would be credit check there as well...?

do you really need the "cooling off period", or is that a different term for "finance clause"...?

 

[sk280]

She does'nt earn an income and yes she is included as a dependent!

 

[FHB]

If she doesn't earn an income, then why put her on the mortgage? I'd ring Colonial direct and ask them to clarify the situation. If the finance falls apart you should use that clause of your contract (if you added it) to crash the contract and renegotiate. IMO.

Edit: Talk to your conveyancer about costs if the contract crashes.

Edit again: Also ask your conveyancer about extending the contract dates if finance is taking longer than expected.

 

[jsj]

If you have a finance clause, any decline on finance will see the deposit refunded. Evoking the cooling off will see you liable for a penalty to be withdrawn from the deposit, in QLD this is the case.
If an extension to the finance clause is going to be required to fulfill the lenders criterea, the earlier you apply the better it will most likely sit with the sellers.
You could also explain the situation to the selling agent, have a new contract drawn up in both names and start the process again, which will give you more time. Changing names later on may cause extra stamp duty to be payable.
Hope this helps.

 

[alexlee]

If she doesn't earn an income, then why put her on the mortgage? I'd ring Colonial direct and ask them to clarify the situation. If the finance falls apart you should use that clause of your contract (if you added it) to crash the contract and renegotiate. IMO.

Edit: Talk to your conveyancer about costs if the contract crashes.

This is not Queensland, FHB. In NSW, the 5 day cooling off isn't subject to anything: it's literally just a cooling off period. The finance and building inspection clauses are all included in that 5 days.
Alex

 

[FHB]

This is not Queensland, FHB. In NSW, the 5 day cooling off isn't subject to anything: it's literally just a cooling off period. The finance and building inspection clauses are all included in that 5 days.
Alex

Ouch, that's a pain.

 

[Chazz]

Hello,

My first post - I hope I can help!

I was in actually the same situation with a Colonial Loan as yourself. I wanted the property to be in joint names, but for the loan to be in my name. The way we got around this issue was for my wife to be named as guarantor to the loan - not a joint applicant. The loan was still technically in my name, but the bank wanted my wife to be guarantor because she was a joint tenant to the property. This way, they got the security they wanted and I got the loan just in my name.

The guarantee was a very simple document - no income proof (my wife does not work). Also, some banks require the guarantor to have independent legal advice, but apparently the Colonial don't (or was an oversight on their part at the time).

Hope it works out for you

Regards
Chazz

 

[dantheman]

If you're on the title you've got to be on the mortgage... if you're a part-owner in something you wouldn't want someone mortgaging it without your permission

Skaters situation is the opposite - an additional borrower who is not on the title..

It's a little confusing but it makes sense when you think about it.

As Chazz said - another option is to put your wife as a security guarantor so that they don't need to assess her income - but even so, it's still going to take some extra time and they'll still do a CRA check.

I would get your broker's requirements for your wife as guarantor or applicant and get them back to your broker ASAP so that CBA's clock can start it's ticking..

 

[Kristine..]

Hi SK

Dare I suggest that perhaps it is your broker who is dissuading you?

I have a customer who has held a pre-purchase approval for himself for about six weeks now. First home buyer. Yesterday he faxed me a contract with his mate (a student, no income) as joint tenant. One phone call confirmed that we just have to add the mate to the application and to the FHOG application, and collect the 100 point ID. No worries. During the phone call back to the customer an SMS message came in that valuation had been ordered.

We should be out to docs by the end of the week and settled within three weeks

There really isn't a problem and I can't see why anybody would be telling you that there is

Cheers
Kristine