Work for wife's company and getting mortgage together?

[Olive]

Hi, me & hubby wana get a mortgage together without needing to go for low-doc.
Hubby owns his business and is the company director and have been PAYG getting a wage as an employee for over 3 years. Company makes no profit. I work for another company as employee also getting a wage.
We don't want hubby to be treated self-employed don't want to show company's finance don't wana get a low doc.
We have an idea but not sure if it'd work?? IF hubby transfers his company under my name I become the company director he becomes a normal employee. Would this stop the lender putting us under low-doc? since I work for someone he works for someone (in this case working for the wife's pty) Is there going to be a problem (would the lender check) if the wife is the company director? Would the loan get approved if the wife (myself) has double status for the mortgage application??

 

[boomtown]

Well for starters he wont have much of an employment history.

 

[Rolf Latham]

Hiya

my advice is to stick with the facts for a start before assuming youd need to do "bodgy" things because the compay financials are probably sufficient to fund the "payg" for the hubby.

In any case, youd be likely to be asked for returns if either of you was a director with the other drawing a wage.

Sit with a good independent broker and see if you can make it work on full doc

ta
rolf

 

[Bradsdad]

Hi, me & hubby wana get a mortgage together without needing to go for low-doc.
Hubby owns his business and is the company director and have been PAYG getting a wage as an employee for over 3 years. Company makes no profit. I work for another company as employee also getting a wage.
We don't want hubby to be treated self-employed don't want to show company's finance don't wana get a low doc.We have an idea but not sure if it'd work?? IF hubby transfers his company under my name I become the company director he becomes a normal employee. Would this stop the lender putting us under low-doc? since I work for someone he works for someone (in this case working for the wife's pty) Is there going to be a problem (would the lender check) if the wife is the company director? Would the loan get approved if the wife (myself) has double status for the mortgage application??

You mention the company doesn't make a profit. Does it at least break even or maybe have some items that can be added back (depreciation, extra super payments etc) to bring it to break even?

Is there an underlying reason why you don't want to show company returns? Just because he's S/E doesn't mean it has to be Lo-Doc.

When doing a CRAA check on your Hubby the lender will see he's a director. Even if you wait until he's removed they will most likely match the company name. if this came to light you may well have burnt your bridge with the lender.

Anyway, unless the company's figures are adverse I can't see an issue. If they are then you need to ask yourself...can he sustain the wages he's paying himself and in turn may this put you under adverse pressure in meeting credit commitments.



Regards
Steve

 

[Olive]

Financial planner? conflicts of interest?!

Thanks everyone.
We were going to simply get a mortgage broker but thought may as well get financial planning done 1st. Quoted to be over $3k for a review. The thing is we can see conflicts of interest. Now more qs!!
This planner, can't mention he name here, claimed that he knows broker and insurance etc and if we take any of his suggestions or go for any of his recommended professionals we may not need to pay him the full fee coz those guys will pay him commissions etc. This generates another question: how neutral is a financial planner? We can see the conflict of interest this planner is going to recommend us on his highest payback options not something that's best for us although he claimed he doesn't sell any products.... um....isn't that the same anyways? Wana know what your thoughts are?
Really who needs a financial planner?

 

[Propertunity]

We were going to simply get a mortgage broker but thought may as well get financial planning done 1st. Quoted to be over $3k for a review.

That sort of fee is pretty much industry standard

The thing is we can see conflicts of interest.

Mmmmm, yep

This planner, can't mention he name here, claimed that he knows broker and insurance etc and if we take any of his suggestions or go for any of his recommended professionals we may not need to pay him the full fee coz those guys will pay him commissions etc.

That sort of thing is pretty much industry practice. They have to declare all comms received. But if you decide not to take the advice you still need to stump up the $3K.

This generates another question: how neutral is a financial planner?

Ahhh, how neutral can anyone be when they are being paid commissions for product recommendations?

Really who needs a financial planner?

We all do (possibly) at some stage.....and herein lies the problem. You just need to find a good one you are comfortable with.