QLD Adding a parent to property title to refinance loan

[lw93]

Hi all,

I am trying to find out if it is possible to add a parent to my investment property title. The reason I would like to do this is because I want to refinance my current loan to another lender and move from P&I to interest only. The thing is that I am currently a student (recently left a job to pursue full time study) and have no source of steady income, hence the want to add a parent who has a PAYG salary so that the bank can see that the loan will be "serviced". I have tried moving my loan to interest only with my current provider but because I am "unemployed" they will not accept the change so i am stuck on a high P&I rate. The rental income is currently covering 80% of the repayments and I am using savings to make us the rest. Loan is $300k and rough valuation of $385k.

plain and simply, is it possible to:
1. add my father to the property title so that I can
2. take out a new loan in both of our names and his salary will be the one "servicing" the loan

I am happy to book an appointment with a conveyancer but would just like to know if this is doable with above stated caveats first. Any information would be greatly appreciated.

 

[Docupedia]

Lenders are very sceptical on interest only at the moment, they’ve copped a bit of a hammering on putting people onto unacceptable interest only loans without considering the situation when it reverts to P&I. I’d strongly suggest talking to a broker before taking any steps - but that might be getting ahead of things given the information below.

Each lender will have different criteria on how it will consider the situation, some are better then others, and your situation may be better off in the hands of a lender outside the ‘big four’ banks.

Also consider the cost. Putting someone on title, except in rare cases which don’t appear to apply here - like adding a spouse, is going to trigger a transfer duty event. Given it is a related party you’ll have to get a valuation/appraisal done on the property, and pay duty on determined value (if a range, the highest figure) apportioned against the share being transferred. This will have to be paid before the transfer can be lodged for registration.

The process could cost thousands of dollars to accomplish. You should weigh that up against the potential savings.