Feb 01, 2020 3:02 pm
We are preapring to do a knock down rebuild. We own our current home and will be able to pay for most of the demo/build with cash. I am the primary earner but I am not on the deeds. I am wondering will the bank loan to me based on these circumstances? We will need to borrow maybe 150-200k.
Re: KDR - not on deeds but primary earner - will bank loan t2
Feb 01, 2020 6:12 pm
Lenders will allow your income to be taken into consideration as a co-borrower or a guarantor if there is “substantial” benefit to you. How that looks differs between lenders.
Some are happy enough if the money is being used in a way that will benefit you - ie: you’ll live in the home.
Some will require you to get financial advice and still proceed.
Some will want you to transfer a portion into your name.
The rest fall somewhere in between these variations but the key is in showing “what’s in it for you”! Why would you pay back a loan in someone else’s name? If you can satisfactorily tick that box you’re on a winner.
Ask friends or family to recommend a broker who can steer you towards a more friendly lender.
Enjoy the build!!
Property crazy expert mortgage broker, love building new homes!
Two Red Shoes mortgage broker
Re: KDR - not on deeds but primary earner - will bank loan t4
May 13, 2020 2:37 pm
Hi Moo, I'm in a similar situation, have spoken to ANZ and NAB, and as long as your name is on the title (even if low percentage like 5%), they have said they will lend to me/partner for construction loan (land in parents name only currently).
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There isn't in this scenario.