How do I handle a gifted equity release with an existing guarantor loan?

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DrLemmingFit76

New Member
Hey legends

Anyone had a similar thing happen?

Used a fam guarantor for an investment prop 1-2 yrs ago. Now my dad wants to gift me his 50% equity in the family home (used for the guarantee, it's their PPOR, fully paid off). He has no use for it, wants to sort his estate how he wants (estranged sibs worry him) & knows I'll look after mum.

I know there'll be stamp duty & conv fees (~$20-30k) but he's covering 'em – no cost to me.

Currently at 90% LVR on the investment prop, & with another deposit of mine coming up, freeing up cash to rremove the guarantorship is tough.

Would love any tips or advice on the process or what to watch out for!
 
Yeah, I totally agree with the colleague – you really gotta double‑check, because Centrelink might still pull the that's a sale card and mess with your pension. Had a client who backed out after finding that out. But ugh, from what I gather, it also depends on how many years the parents have left before they can even get the pension. Go figure.
 
This transfer will involve stamp duty, and you’ll nee a security release or refinance of the guarantor loan. Alternatively, you could apply for a purchase loan to “buy” half the property from Dad, and then he can gift the funds back to you this would bring the other loan below 80% and unlink the two properties. You could even use additional funds if needed. Please, do sit down with a good broker to work through this it’s so important. I truly want to help if you need me.
 
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