A friend of mine recently got married. Her husband had owned the house they live in before they got married, and now she wants to know if they have to refinance in order to own the home together.
This is a great question. And I think there is not always clarity about being on title and being on a mortgage.
The mortgage is a simply a tool for obtaining a property. It ties the debt to the property and identifies a responsible party. You don’t have to have a mortgage to own a home. That being said, you can have ownership in the home by being put on title, without being liable for the debt, ie being on the mortgage.
Still, some people like to have a shared ownership in the responsibility for the property, and therefore want to be on the mortgage. In that case, yes you need to refinance to add someone else to the loan. Lenders always look at what other debts, someone would be responsible for and evaluate their ability and likely hood to repay the loan. It truly depends on your individual situation on whether it is best to just be added to the title, or refinance and assume the debt as a couple. It’s not any easy distinction to make and there are a lot of variables involved, so if you are thinking about whether to add someone to the title or put them on the loan, give us a shout and we can take a look at your situation and steer you in the right direction, just click on the link below to send me a personal e-mail with your situation.