When you apply for a mortgage, you typically offer the property you buy as collateral or security to the lender for the loan. If you're not named on the property's title, the lender may not consider you a borrower as you're not considered an owner and don't have the right to offer the property as security.
If you apply for a joint mortgage but decide to not include your name on the property title or deed, you cannot be considered the legal owner of the property even though you might be held responsible for repaying the loan. Some lenders may see the second borrower as a guarantor rather than an equal borrower.
When you purchase a home via a mortgage loan, as a borrower, you are, in fact, a homeowner free to make decisions pertinent to the property (decor, renovations, construction, landscaping and so on). Even so, do you actually own the home you were lent money to purchase? Simply put, yes; you do own your home.
Can I add someone to my home loan without refinancing? The short answer to this is no, as lenders need to assess the income of the other applicant before they can be added to the mortgage. Unless the lenders re-assess the serviceability of the loan, they cannot hold another person liable for the mortgage debt.
Remortgaging is the standard way to add someone to a mortgage. If you approach your existing lender, they will undertake the new application and assist with any questions you have along the way. It isn't advisable to just accept a remortgage offer from your existing lender.
Adding a new husband to a mortgage
Your mortgage loan will most likely need to be fully refinanced. Adding a new person to your mortgage loan changes the loan's terms. You won't be able to change these terms unless a lender creates a new loan for you through a mortgage refinance.
A joint application is one of the simplest and most common methods for two people to end up with their names on a mortgage. Adding a second person to a mortgage that's already in place can be more complex. It's possible to add a partner or spouse to an existing mortgage when you get married.
The process of transferring a mortgage to one person usually involves an interview and consultation with a solicitor, and you might have to have your property revalued. There's likely to be admin and legal fees, and possibly stamp duty if you're making a substantial payment to the other joint owner.
If you agree for your ex-spouse to take over the home loan, you need to remove your name from the mortgage. However, it isn't as easy as calling the lender and informing them about your divorce. Legally, the loan has to be refinanced in the name of the person who continues taking the responsibility for the repayments.
When it comes to married couples, the line is very clear-cut when it comes to ownership rights. Even when one partner owns the house, both parties in the marriage own a share of the equity in the property. This is the case even if the rent, mortgage, house deposits and repayments are under one party's name.
Shop for a mortgage loan, not a mortgage servicer
It's more important to shop for the right loan type, a low rate, and fair loan terms, since these are the things that decide how much you'll pay in the long run. But if you're concerned about who your servicer will be, don't be afraid to ask.
All lenders will allow more than one person to be named on a mortgage. The main applicant is usually the person who stands the best chance of qualifying for the mortgage. Generally speaking, lenders allow up to two applicants when applying in personal names and up to four when applying in a limited company capacity.
When you apply for a mortgage, you typically offer the property you buy as collateral or security to the lender for the loan. If you're not named on the property's title, the lender may not consider you a borrower as you're not considered an owner and don't have the right to offer the property as security.
For example, joint personal loans are fairly common among couples when one person has lower credit or when two incomes can help the couple qualify for a larger loan amount. Applying for a joint loan with someone who has an excellent credit rating might also help you secure lower interest rates or better terms.
A guarantor can only support your application for a student line of credit and credit card. They agree to repay the borrower's debt if the borrower is unable to make their payments. A co-borrower is someone borrowing money with you. They can support your application for our financing solutions.
Both parties will remain one-hundred percent responsible for making the mortgage payment every month. However, it is possible for couples to work together to come to an agreement as to how the mortgage will be paid.
If your ex-spouse refuses to sell the house, you can force the sale of the home via a court order. If you take this option, it means that a judge can order that a home is sold as part of a property settlement.
A number of reasons can warrant applying for a mortgage in just one name and most lenders will consider this arrangement. A single application can be more suitable than a joint mortgage if: Your partner has bad credit. You want to retain certain stamp duty benefits.
Since most people in Australia sign a mortgage contract with their spouse or partner, this means property usually transfers to a surviving spouse or partner (joint tenant) when people die.
Under Australian law, you can give real estate to a relative as an outright gift. When giving ownership to a third party, there is no exchange of money. The gifting process involves filing a Transfer of Land with your title office. Filing a gift deed may also be necessary.
Yes, this is possible too. However, if your partner decides to leave the joint mortgage, it means that you will be the only person liable for the repayment of the mortgage loan. In this situation, it is likely that the lender will want to make sure that you are able to afford the repayments before they approve this.
Advantages of joint mortgages
It may be easier to save a larger deposit as multiple people are contributing. If you are unable to make the mortgage payment for any reason (sickness for example), your partner or someone else on the mortgage may be able to cover your share for a time.
You can give ownership of your property to a family member as a gift. This simply requires filling out the necessary paperwork with your state revenue office and title office, including a transfer of land. Your conveyancer may advise you to organise a deed of gift as well.
A co-borrower is someone who joins you, the primary borrower, in the mortgage application process. Their credentials are used, in conjunction with yours, to qualify for a home loan.