I am purchasing property and was wondering if following is possible:
A. The loan from bank needs to be in my name only. (If I add my family member (one of my parents), then I wont get loan as they look at their expense, etc).
B. On the property title, want to add one of my parents.
Is above possible? What are alternative setups for this?
thanks. thats helpful.
Once my partner and I applied for a home loan.
By chance it so happened that I just swapped jobs and it was on a contract basis.
The bank would not take me on in the loan but the missus earned enough to borrow the amount we needed herself.
We got the loan as her on the loan and both our names on the title, I was down to make repayments but not the borrower.
They spend too much to qualify for a loan, but they want a legal stake in your house?
Are you sure you're OK with that?
yes
Alright, just wanted you to think about that for a moment. Keep in mind that it might not be good for your parents either, as if there are repayment issues then they will go after your parents as well - as others have replied, the bank will want all names on the property to be on the loan too.
IMO if this is to gift it to your parents, it's best to keep it off the books. If you're doing this to try and keep the property away from someone else… you might want to ask a lawyer.
i understand. thanks. i will.
End of the day, bank is not going to give up ownership of property unless they are on loan.
It has an interest in the property as it loaned you the money to buy it, it has final say until your home loan is paid off
Adding someone to the title means they need to be on the loan documentation also.
The property title and the persons named on the loans have to match.
The bank needs to be able to chase all the owners of the home in order to use it as security against the loan.
Speaking from experience as I have just settled on a joint purchase.
The property title and the persons named on the loans have to match.
Banks will occasionally allow one name on title and two names on the loan account.
I have never heard of them allowing it the other way around, as the OP is proposing. The issue would be as you stated, that they can only pursue the borrower under the loan account.
My partner and I have this (their name on title, both names on account) - the bank made me sign a "co-borrower" form that states "customer may receive no substantial benefit from the loan" before they'd proceed.
Banks will occasionally allow one name on title and two names on the loan account. I have never heard of them allowing it the other way around
tsunamisurfer above is saying that that's exactly how their title/loan is arranged.
Is above possible?
Most likely no.
What are alternative setup for this?
What are you actually trying to achieve? No-one can give you alternatives if they don't know what you are trying to do.
This is like when someone asks a really strange and specific programming question on stackoverflow and people spend hours trying to help them and it turns out they thought it would solve a particular problem but actually the answer was to do something else entirely which was simple and designed to solve that problem which is routine.
I thought the title belonged to the bank until you pay off the loan. Not sure though.
The purchaser's name is on the title. The bank has a mortgage against the title and retains it in their possession until the mortgage is discharged
No, When you got a home loan, bank hold the title , they don't like infidelity to the relationship between you and the bank.
You can't do this because if the person on the loan defaults, they need to be able to repossess the house to sell it and get their money back, but if someone else is on the deed they can't.
You might be onto something there.
Several people here are saying that they have two people on the title, but only one of them on the loan documents.
Of course they can take adverse possession in the event of default
Not if it belongs to someone other than the people on the loan, who hasn't done anything wrong in terms of defaulting
Our first apartment my wife got the loan and we were both on the title.
2nd and 3rd I got the loan and we were both on the title.
Just curious what exactly you had to do with the bank for this? Is it some special form?
Don't know about the first. It was with the CBA and my partner organised the loan.
The 2nd (1993) & 3rd (1998) I was with the Qantas Staff Credit Union (now Qudos Bank). My partner was too busy to come into Mascot to sign the forms. I made enough to cover the repayments easily. At the time, their rules said that if you died the loan was wiped. I can't remember any special forms.
I'd be inclined to ask your solicitor or conveyancer rather than here
No
If someone’s name is in the property, they have to be connected to the loan in some way. Either via being a borrower or a guarantor.
https://www.homeloanexperts.com.au/home-loan-articles/one-bo…