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Loan process on Transfer of property

Discussion in 'Real Estate' started by sodapop, 9th Dec, 2008.

  1. sodapop

    sodapop New Member

    Joined:
    12th May, 2008
    Posts:
    3
    Location:
    Sydney, NSW
    hi

    I'm seeking advice on the following scenario;
    Property owned by Person A,
    Transfer of ownership will be processed to Person B
    How easy is it to get an existing loan that is in person A's name, transferred to Person B's name.

    ie, there won't be any contract of sale.

    like refinancing a loan, but with a different mortgagee?

    any help is appreciated
    :)
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi Sodapop,

    I think the issue would be around person B affordability.

    Cheers,

    Dan
    PS Before making a borrowing decision see your friendly lender.
     
  3. Sacko

    Sacko Well-Known Member

    Joined:
    20th Aug, 2007
    Posts:
    69
    Location:
    Central Coast, NSW
    Wouldn't stamp duty etc also come into play?
     
  4. sodapop

    sodapop New Member

    Joined:
    12th May, 2008
    Posts:
    3
    Location:
    Sydney, NSW
    thanks for the replies. I checked with some lenders and Yes, stamp duty / application / legal fees etc will still apply. Most lenders do it like a standard purchase loan

    I'm trying to look for a lender who'll not worry about the deposit thats usually required to be put down by the transferee.

    This is a straight transfer of ownership between 2 related parties - no money for deposit will be given/taken.
    Most lenders will consider this transaction when transferring between husband/wife, parent/child but what about between siblings / first cousins??

    I'm looking for a lender who'll consider this case between cousins.

    Anyone know a lender who'll consider this case?

    Person B can prove (full doc) affordability of the repayment of the existing mortgage.