Guarantor with retired parents

Any general questions you might have in regards to loans and finance.
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narelle
Posts: 2
Joined: Sun Jan 10, 2010 7:33 am

Guarantor with retired parents

Post by narelle »

Hi I am new at this!!
My situation is a bit different. Nine years ago I had enough money to build a small kit home but did not want to go into debt to buy land. My parents offered for me to build on their 100 acre farm. this was a wonderful sollution at the time. However the local council would not let us subdivide the land. So we built it anyway, technically i just built Mum and Dad an extra dwelling on the farm.

This has only ever been an issue when my husband and i have borrowed to purchase a vehicle or personal loan for home inprovements, the banks always ask "do you own the home" and we answer no.

We currently have 2 car loans each at around 9.9% interest and a personal loan at 13.87% that we used for home inprovements including solar power.The total debt is $110,000. We would like to consolidate and also buy a new herd of cattle (approx extra $10,000) My parents are no longer working but they own the farm out right and would like to go garentor.

My husband and i both work full time with a combined income of $88,000. Do you think it is possible, we only have minimal savings but have never missed a payment on anything!!We also have 2 dependants. The Farm is only used as a hobby for my parents now and brings in minimal cash, planning to increase this with new cattle!
Last edited by narelle on Sun Jan 10, 2010 12:49 pm, edited 1 time in total.

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Garentor with retired parents

Post by Otto Dargan »

Hi Narelle,

Many lenders do not like having retired people being part of a loan for borrowers that are younger, particularly if their home is security for the loan. That being said there are some lenders that can likely assist with your situation as long as your farm is just a hobby farm as you said. If there is just solar power then this may be an issue for some lenders.

Thanks
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

narelle
Posts: 2
Joined: Sun Jan 10, 2010 7:33 am

Re: Garentor with retired parents

Post by narelle »

thanks for replying so quickly.(To Narelle's enqiury)
The solar power is an added feature to the house and is used to reduce our power bill but we are still attached to main power.
My paernts do not have an ABN for the farm and the last time we had it valued was 6 years ago and it was valued at around 500,000.

My husband and I are in our mid thirties and have both worked full time for many years. do you have any sugestions as to who we could approach to apply

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Guarantor with retired parents

Post by Otto Dargan »

Hi Narelle,

I have emailed you further details.

Thanks
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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