Watch and Learn How Code of Banking Practice Benefit You and Your Partner.
Here’s the context on what I was talking about in the Video:
Hi guys! It’s Jason Khoury managing partner of iChoice based here in Sydney. Probably, the code of banking practise has kind of thrown the banks on their backs. Hopefully, by the time you’re watching this video, it’s all calmed down a little bit. There is some confusion as to that if I want to buy an investment property, can I have that secured by a property owned by my wife and I? The big question is, “Is my wife getting any financial benefit from that?” I’ve had some discussions with very senior credit personnel in the major banks. I’ve really kind of been at war with them about this because all my medical clients pretty much put properties under their wife’s or husband’s name and they go on as co-borrower.
What generally happened is that the banks have started to get their heads around it now. There will need to be another form signed by the co-borrower who’s not going to take ownership of the property. They need to sign that they have not been coerced into that. Also, that they do get financial benefit from their partner acquiring that property in their name. As a family, as a team, as a couple, they’re better off for asset protection or tax minimization for the property to go into the other person’s name. The reason might be to avoid land tax. It might also be true for asset protection. Or, it might be that the property is going to be negatively geared and they want the highest income earner to own that property.
Anyway, I just wanted to throw out there that it’s there when the bank asks you or your broker to sign something to say you haven’t been coerced into making a final decision. It’s the code of banking practice gone mad and the banks don’t know how to deal with it. Thanks, guys! Keep watching!