Loan for Knockdown-Rebuild or Extension

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Ajax356
Posts: 3
Joined: Tue Dec 18, 2012 6:50 pm

Loan for Knockdown-Rebuild or Extension

Post by Ajax356 »

Hi,

I am currently living and paying rent to my husband's father who actually owns the property.

Question is, can we borrow a loan to extend or re-build even though we don't actually own the title but my father-in-law will allow?

Anything special we need to know?

Thanks in advance!

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Norman Isaac
Mortgage Specialist
Posts: 60
Joined: Tue Aug 28, 2012 11:34 am
Location: Sydney, Australia
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Re: Loan for Knockdown-Rebuild or Extension

Post by Norman Isaac »

Hi Ajax356

Thank you for your forum post.

Please note that the legal owner on title must also be the borrower. Therefore, you cannot borrow against his property in your own name.

A possible option would be to add your name on title to allow you to be a borrower. This however would attract stamp duty.

Please let us know if you have any further questions.
Norman Isaac
Senior Mortgage Broker
P | 1300 889 743 E | norman@homeloanexperts.com.au
Home Loan Experts

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