After some advice please

Any general questions you might have in regards to loans and finance.
Post Reply
User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: After some advice please

Post by Otto Dargan »

Hi Jay,

Yes you are right. If your partner is on the loan then when she applies with her parents in the future most banks will assess her as making payments on the full loan that you have with your parents even though she is only responsible for a part of it.

That being said some of our lenders have a "common debt reducer" policy which allows her to provide evidence that she is not paying the full loan. Payslips from you and income evidence from your parents (if applicable) can be provided which then prove she is not paying the full debt on her own.

The lender would then assess:
  • Her share of the home loan only e.g. 1/4 or 1/3 of the actual payments.
  • Exclude your parents and your living expenses e.g. she is not paying your day to day expenses
  • Children's living expenses may be included at 100%
So based on what you have told me you should be fine. The exception is if lenders change their policies in the next 5 years OR if her situation changes.

Feel free to call us on 1300 889 743 and one of our brokers can assist you further. I think we should do a full assessment based on the proposed situation in 5 years just to be sure.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Post Reply