All Topics / Finance / beginners question

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  • Profile photo of tom123tom123
    Participant
    @tom123
    Join Date: 2013
    Post Count: 91

    Hi my name is Tom, I'm 21 and new to all of this. i'm currently looking to buy my first investment property and i can't get finance so my dad will be getting the loan.

    my dad has a line of credit out of his house of around 150k and i have 32k in the bank but currently am unemployed (looking for work). i'd only need 100k max for a 20% deposit on a house. (i'm looking for properties around 300-500k)

    So my first question being how long would it take us to get a home loan on a property? because i want the process of getting a loan to be fast. thinking a 20% deposit would help that. i actually have no idea how long it would take to get the loan?

    second question, if i have the title of the property and he has the loan in his name, but he's paying the weekly repayments can he still claim them because its for a investment property or does he have to be on the title of the property as well? and if he does can be a caveat ? 

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Tom

    Approval can take between a day and two weeks depending on the lender and loan type.

    You also don't necessarily need to have a 20% deposit to purchase the property if you're willing to pay LMI. The minimum is 5% plus costs.

    The bank is going to want your dad to be on the title if he's borrowing the money.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Tom as Jamie mentioned Title will need to include your dad.

    Some lenders will insist that loan and title are identical and question where the beneficial interest lies others will be ok with it.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of tom123tom123
    Participant
    @tom123
    Join Date: 2013
    Post Count: 91

    Hi guys, thanks for the replies.

    ok so in that case i'd have my dad on the title i might be a caveat on the title. my idea is just to make low ball offers and then when i get a offer accepted to act quickly.

    any tips on how i can do this with finance to make the "getting a loan" process faster? this is first time investing in property / buying a house. 

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Get specific legal advice – a caveat is not a legal instruct claiming ownership. It just states that you have interest in the property and issues will arise when it comes to further borrowings against the property. Lenders do not like caveats.

    Also not sure how old your dad is but is age may be an issue so you need to factor this.

    All in all please plan carefully rather than unknowingly and randomly choosing a lender and creating unnecessary hits on your credit file.

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
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    Residential and Commercial Brokerage

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Terry posts here can can be a good point of reference re the legalities of the caveat. 

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

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