where can I get a mortgage

[Eillish]

Hello all, I'm hoping someone can help me.
I am the owner of a Duplex with my over 80 year old parents.
We have 100% equity and I need to borrow about $80.000 for renovations.
I have had 2 previous mortgages both small.
Now they say no because of my parents age and that if anything happened to me they couldn't pay it back.
Redilend says they can get me a mortgage but having read your reviews I think it would be u wise to go with them.
Does anyone have any advice on how I can overcome this problem without buying their 2/3rds. Cheers Eillish

 

[D.T.]

From a bank / building society / credit union

 

[jrc77]

Why not speak to a mortgage broker about your options?

Regards,

Jason

 

[Aaron_C]

Having 2 people on a loan who are 80 years old is a NCCP minefield. Consider a reverse mortgage.

 

[Peter_Tersteeg]

Does this property belong to you or your parents? If it belongs to you then leave your parents out of the conversation with the bank completely.

Beyond this, if you (or your parents) are borrowing money, the question will be asked, "How will this loan be paid back?" If your parents have no income, they can't afford loan repayments so they can't borrow money.

Recently I managed to get a $720,000 PPOR loan for a couple who were 73 and on the verge of retiring. It wasn't easy but I was able to demonstrate to the lender several things:
* Until retirement they could afford the loan based on their existing income.
* At retirement they could sell their existing home and pay off the loan.
* If they didn't sell off their home at retirement, they have sufficient funds to hold the service the loan for an extended period of time (so they didn't have to sell under fire sale conditions).

That couple retired 3 months later, sold their first home, moved into the new property, paid off the loan and walked away with $500k.


The alternative may be a reverse mortgage as Aaron indicated. This is where the elderly person borrows against the equity in their house. They don't need to make repayments, but the bank will want to sell the house (or refinance it elsewhere) when they move out (either due to death or moving onto a retirement home). The interest is capitalised onto the loan, so the amount owing increases over time.

For a couple in their 80s wanting to borrow $80k, this sounds like a reasonable solution if you accept that the loan will slowing erode the equity. Some people consider it to be eating the kids inheritance (although I argue that no child should ever expect an inheritance, rather they should appreciate it if it ever comes).

 

[impala67]

Consider a reverse mortgage.

This was all I knew of also in this situation.

 

[Brady]

Will all depend on situation as mentioned above.

I recently did a loan for someone who was 93years old (yes 93) joint application with son. So can be done but has to make sense.

Also as mentioned reverse mortgage if both of age if debt cant be repaid under normal conditions.

 

[Scott No Mates]

Like the brokers, consider the reverse mortgage. Also consider possibly selling & moving to a lower maintenance property like a sepp5 (NSW) or to a low care retirement village.