All Topics / Finance / Joint vs Single mortgage application

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  • Profile photo of neilharrison_253neilharrison_253
    Participant
    @neilharrison_253
    Join Date: 2013
    Post Count: 33
    November 3, 2013 - 11:57 am

    Hi

    looking for some information. My wife does not currently work and looking to buy something ASAP. I can't get my head around the difference in affordability if I do it as a joint application with two dependent vs single applicant. Would I be able to do a single applicant and not include my wife as she has no income or would that mean 3 dependants?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 3, 2013 - 12:27 pm

    Hi Neil

    Hate to say if you are married you wont be able to put yourself down as single so all lenders will consider a joint living allowance with 2 dependants.

    If your wife was working then you could look to put the property and loan in your sole name and we would argue that your wife had sufficient income to cover a single persons living allowance so you could be assessed as single.

    In a case like yours if serviceability is tight it is a matter of using a pro investor lender with more generous servicing model.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 3, 2013 - 12:28 pm

    Seek legal and credit advice.

    My be little point in putting your wife on the loan as she would reducce serviceability but you would be doubly at risk if things go wrong. Of course there are other reasons to consider too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of neilharrison_253neilharrison_253
    Participant
    @neilharrison_253
    Join Date: 2013
    Post Count: 33
    November 6, 2013 - 10:34 pm

    Hi Richard

    Thanks for the response. I have spoken with you a few times before with regards to serviceability so i already know my limit. Was wondering if there was a way to increase it by not including her but did not realize they would increase my dependents by 1

    Thanks for the assistance

    Regards

    Profile photo of neilharrison_253neilharrison_253
    Participant
    @neilharrison_253
    Join Date: 2013
    Post Count: 33
    November 6, 2013 - 10:35 pm

    Hi Terry

    Thanks for the response. All makes sense now

    Regards

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    November 6, 2013 - 10:49 pm

    Hi Neil

    As has been mentioned above – you could put your own name on the application but you'll have to declare that your married with two dependents and that your wife is reliant on your income.  Therefore, having just you on the application won't make a different to servicing.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

Viewing 6 posts - 1 through 6 (of 6 total)

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