Adding Your Partner to Your Home Loan

August 31, 2017


Is it easy to add your partner to your home loan? How will this impact your finances? What about ownership of your property – how does that work?

You can add your partner to your mortgage. However, you will have to refinance your home loan to do it. Depending on your and your partner’s financial goals, it may be a beneficial decision. It’s also a necessary step if you are going for joint ownership of your property. Learn about the steps you’ll have to take to add your partner, and even how you can benefit.

Refinancing to Add Your Partner to Your Mortgage

You won’t be able to just add your partner to your current mortgage contract. You’ll have to close your current loan and apply for a new one together. This is because your lender will need to evaluate your partner’s income and credit history before they can make him or her liable for the debt.

When you refinance, make sure to switch to a home loan with the features that you want. You can also use this as an opportunity to refinance into a larger mortgage if you want to have money available to upgrade your home, consolidate your other debts, or cover other purchases.

For couples who are newly married and thinking about starting a family, this can be a great option. Especially if your partner has a high income and can help you get a lower rate, as well as a larger mortgage, you both together will be able to benefit financially while still living comfortably within your budget.

On the other hand, if your partner has bad credit and may not be eligible for a mortgage, your joint loan application could be rejected. This is important to keep in mind as you may be better off not refinancing in the first place.

Adding Your Partner to Your Property Title

Just because your partner is added to your mortgage, that doesn’t mean they have any ownership over the property. Refinancing is the first step as you’ll need your mortgage documents to have your partner added, but there is more paperwork you’ll have to take care of.

To add them to the property title, you’ll need to apply with your state government. You’ll have to fill out a transfer form and then provide the certificate of title (which your lender will have until you pay off your home loan) and mortgage documents.

Is It Worth It to Add Your Partner?

If both you and your partner feel that refinancing to a new home loan under both your names would allow you to reach your financial goals, then this can be a smart move. Then you can also go ahead and add them to the title. However, once all of this paperwork is done, you and your partner will be financially entangled. You both will be liable for the mortgage, and you both ‘own’ your property.

If you aren’t sure, and to help navigate the process, it’s always a good idea to seek out professional advice and guidance. Talk to a mortgage specialist, your broker, or your financial advisor. This is a big decision. Make sure it benefits both of you and that you understand your long-term associated responsibilities.

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