Buy someone out of a mortgage australia

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Buy someone out of a mortgage australia

Post by Otto Dargan »

Hello awesome. Welcome to the forums.

You can choose to buy out your ex-partner’s share of the property, they decide to buy out your share of the property or sell the property and then share the sale proceeds, which is one of the easiest ways to divide assets after a separation.

However, you aren't allowed to just change the loan terms and remove your ex-partner's name on the title. In Australia, you're not allowed to take over the mortgage of another person or remove someone from a mortgage agreement.

You’ll need to refinance your home loan to a new loan that's solely in your name but your partner must agree and sign a transfer form. Additionally, you'll need to meet standard bank lending policy without your partner.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Buy someone out of a mortgage australia

Post by Otto Dargan »

Hi rage,

Based on what we've seen it's typically the equity that gets split, but it's never that simple! It's best if you discuss this with your lawyer because it's a complex issue and you may possibly also need to speak with an accountant to get specific information for your circumstances.

Regarding stamp duty though, it's waived in most states for a transfer of ownership as part of a divorce settlement. Also, you won't likely have to pay any Capital Gains Tax (CGT) if the property was your home.

However, if it's an investment property then whoever keeps the property may be liable for CGT in the future as if they had owned the property themselves the entire time.

You can check out our website for more information. You can also call us on 1300 889 743 or enquire online if you need financial assistance to restructure the ownership of your properties.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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