Joint Venture Mortgage Question

[Sifu]

Hi Guys

Just want to know if someone can shed some light with regards to getting a mortgage when going in as a JV to purchase a house.

Basically from my chat with the bank the other day, if a friend and I say for example wanted to get a $700k loan (and we are both wanting to do 100% loan as we both have enough equity in our current rental portfolio), the bank will not lend us any money unless BOTH of us can service the $700k.

Now i understand the banks point of view (ie; in case one of us get sick, cant work etc. then the other one must be able to service the loan), but is there any way around this?

At the same instance, if we both have the deposit/equity capability and also the serviceability then what is the advantage of going in as a JV in a property purchase?

Thanks

[Nick G]

That's the new rule I think.

How about one of you pays the deposit and the other settles on the loan?

[Rosco]

Talk to a mortgage broker and work through the best way to approach it with them.

There is a few different ways you could approach it!

Ross

[Bobsyouruncle]

if we both have the deposit/equity capability and also the serviceability then what is the advantage of going in as a JV in a property purchase?

Absolutely none. You ONLY do JV's when you need to, unless this is a formal business partnership of some kind.

[Sifu]

Yup I figured so, pointless to do JV really if you cant "pool" your income together.

Was the rules always like this?