Just a question

Any general questions you might have in regards to loans and finance.
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mayer
Posts: 49
Joined: Mon Jun 15, 2009 12:21 pm

Just a question

Post by mayer »

What's the difference between being on a home loan and the property title??

I mean can I be on one but not the other? Is there any disadvantages or advantages about this?

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Otto Dargan
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Re: Just a question

Post by Otto Dargan »

As a general rule the borrowers (people on the loan) must be the same as the guarantors (people offering security for the loan / property owners). There are some exceptions to this. Married couples are allowed to have one as the borrower but both as the owners, or both as the borrowers and one as the owner without too many dramas. If you are borrowing in your company name and using your home as security then this is ok too. Almost any other type of arrangement such as grandma using her home as security for her grandson to borrow money is somewhat dubious morally and is not accepted by the banks. A few lenders will allow "third party security" for guarantor loans.
Otto Dargan
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