Hi Guys,
Can anybody help me with the following scenario.
I am looking at purchasing my first property and would like to apply for the FHOG. However, as the bank will not lend me enough money to purchase a property in the suburb I would like, my sister has kindly offered to also take out a separate loan and lend me the money for 6-12 months.
In this case I will have my own loan and the funds my sister will be lending me that she has borrowed separately. The total amount will be sufficient to purchase in the area I would like.
Given this scenario, would I be able to apply for the FHOG solely with no other applicant (sister) having a 'relevant interest'.
My sister is only trying to help me out and she will not own or have anything to do the property. She is simply lending me the funds. I will be the sole owner of the property for tax purpose and the only person on title also.
Any help hear would be highly appreciated.Cheers,
mav
Hi Mav
Assuming you meet the conditions of the FHOG there is no dramas in taking a loan from your sister as long as she is not a party to the Title.
You can borrow funds for deposit on the security of a motorbike or any other asset as how you borrow the funds has no bearing on the qualification for the FHOG. If you pay cash for the property then you will still qualify for the FHOG assuming other conditions are met.
Richard Taylor | Australia's leading private lender
Just think of your sister as a second lender.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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