Hi All,
Hoping someone (preferably in NSW) can give us some advice.
My partner (26M) and I (24M) are looking to buy a unit together in the next couple of months around Ryde. We’ve been in a registered relationship for a couple of years. He’s currently on a Bridging Visa while waiting for his 820 Partner Visa, which could still take years (don’t get me started…).
I already own an investment property that I bought before we got together, so I’ve already used my first home stamp duty exemption.
Our current financial situation:
- My income: ~$80k/year (currently on workers comp but should be back at work before applying)
- Partner’s income: ~$65-70k/year (part time doing full
time hours)
-My investment property:
Worth: ~$650k
Mortgage: ~$349k
Rent: $680/week
Strata: ~$1,000/quarter
-Savings: ~$120k in my offset account (includes both of our savings)
-Car worth: ~$80k, fully paid off
-Credit cards: $32.5k total limit (happy to reduce to ~$10k) plus an Amex Platinum all in my name
-No other debts
-Living expenses: ~$1,000/month combined
A friend in the same visa situation got a loan through Macquarie. Both partners are on the loan, but only the Australian partner is on the title, allowing him to receive the first home stamp duty exemption and avoid foreign stamp duty.
My questions:
1. We understand we’ll have to pay stamp duty this time because I’ve already used my first home exemption. Could we put only my name on the title to avoid foreign stamp duty and so my partner can keep his first home stamp duty exemption for a future purchase? Are most lenders happy to have both of us on the loan but only me on the title (like my friend), or would it be better for my partner to just be my guarantor? If either option is possible, would he still be eligible for the first home stamp duty exemption when he later buys a third property in his own name after getting PR/citizenship (if his solo borrowing power is enough obviously), since either way (loan holder or guarantor) he wouldn’t be on the title for this property?
2. If my partner buys the 3rd property in the future but can’t borrow enough on his own, could I be a guarantor or be listed on the loan but not the title as I already used my exemption? Is this something most lenders allow even though I am already a citizen?
3. Based on our finances, would borrowing around $400k for a $500k property (20% deposit, so no LMI) be realistic?
We’re happy to use a mortgage broker and just wanted to get some opinions first. I used Mariana from Mortgage Choice last time, but I don’t think she services Ryde.
Thanks in advance!