Buying Out A Partner On A Mortgage

How to buy out a partner on a mortgage

Around half of Australian marriages end in divorce and many more de-facto couples separate after buying their family home.

So what can you do with your home and investment properties when you go your separate ways?

Can I remove my partner?

Yes, you can remove your partner from your home loan.

However, you’ll need to be able to qualify for the mortgage on your own.

If you qualify then:

The steps to buying someone out

The basic steps are:

  • Get legal advice.
  • You and your partner should agree on a price or payments to be made.
  • Refinance the mortgage (this includes a full valuation).
  • Formally commit to a deal with the help of solicitor and a contract rather than a “handshake” deal.
  • Settle on the new mortgage.

The pitfalls of buying out your partner

Separation and divorce is a messy process!

Even if you previously agreed on how to split the property, you may still encounter difficulties:

  • You may have trouble agreeing on the property settlement figures.
  • You may have credit blemishes from unpaid bills as a result of the divorce.
  • You and your partner may have stopped paying the mortgage under the advice of your lawyers.
  • You may not have been expecting the separation so you may not be ready to apply for a home loan.

These are just some of the challenges you may face when buying someone out of a joint mortgage. Read on to find out how to overcome these challenges.

Will I pay stamp duty?

In most cases, you won’t pay stamp duty to buy out the share of the property owned by your ex-partner.

This isn’t just for the family home but also for investment properties that are bought out from the divorce settlement.

Also, be aware that you may still be liable for Capital Gains Tax (CGT) on the transfer of ownership for any investment properties.

This is a complicated area of law so please talk to your solicitor or conveyancer to confirm if stamp duty will be applicable to the transfer of ownership.

How to calculate your partner’s share in the property

It’s not always going to be a 50:50 split!

The first step is to get legal advice and set up a contract stipulating the agreed price of the property.

This should be based on an independent valuation.

Once the final price has been agreed to, you have to consider what share your partner will receive.

If the property has increased in value, this will obviously be taken into consideration.

However, if you were to go to court to divide up your property, they would also take into consideration the following:

  • Contributions by you and your partner prior to purchasing the property including contributions to the deposit and the payment of legal fees and government fees such as stamp duty.
  • Contributions made during ownership, including such financial contributions as earnings, savings, gifts, inheritance, mortgage repayments and improvements made to the property and land.
  • Non-financial contributions such as being a stay-at-home parent or homemaker need to also be taken into account.
  • How much each person could earn in the future.
  • The age and health of each person.
  • Whether there are dependent children and who will be taking care of them.
  • Whether one of you are legal carers for a family member or relative.
  • The length of your relationship.

In this way, each party will agree to a split of the property, whether it’s 50:50, 60:40 or 70:30 etc.


Mortgages to pay out your partner

Getting a home loan to pay out a divorce settlement, property settlement or separation agreement is assessed by the banks as both a purchase and a refinance.

For this reason, lenders will assess your loan application in a different manner, applying different lending criteria:

  • You’ll need to prove that you have the funds to pay out your partner if there isn’t sufficient equity in the property. This is just like a loan for a purchase.
  • Unlike a purchase, you don’t need to prove any genuine savings.
  • You must have a good repayment history on your current home loan, which is the same as if you were applying for a loan to refinance a property.

Our mortgage brokers are experts in the policies of more than 40 lenders including banks and specialist financiers. We know which lenders will approve your mortgage, whether it’s to pay out a divorce or property settlement.

Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will call you to discuss the loans that you are eligible for.


Can’t I just "take over" the home loan?

You or your partner may choose to buy out each other’s share of the property or you can sell the home and share the sale proceeds.

The second option is one of the easiest ways to divide assets after a breakup.

What about taking my name off the mortgage?

You can’t just “take over” or remove yourself from the mortgage! Whilst other countries may allow you to take over the mortgage of another person or remove someone from a mortgage agreement, in Australia, this is not permitted.

You’ll need to refinance the loan to a new loan that is solely in the name of the person who will retain ownership of the property.

The reason for this is that the bank must confirm that the remaining owner can afford the debt on their own.


What if I’ve missed repayments on the loan?

It’s quite common for people going through a divorce or separation to miss some of the payments on their mortgage.

In some cases, this is a result of disputes over who should pay, and in other situations, it’s due to emotional turmoil that may cause people to forget about the repayments entirely.

Unfortunately, some lawyers actually recommend that their clients refrain from making mortgage repayments during a divorce!

This is because they believe that the ex-partner is likely to get a larger share of the equity in the property and so any payment on the home loan is money down the drain!

While this advice makes sense from a legal point of view, the partner that buys out the other partner will have difficulty applying for a home loan to complete the settlement

The reason is that they won’t have a perfect repayment history on their current home loan.

Most lenders require a 6-month history of perfect repayments before they will refinance your loan.

Can I get approved if my loan is in arrears?

One of our lenders can accept just a 3-month history of clear repayments as long as you have no other credit blemishes.

We also have access to specialist lenders that can consider your situation, no matter how many payments have been missed! However, you must prove that you were able to afford those repayments even though you didn’t make them.

Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will go through your repayment history and let you know what your options are.


The bank valuation is critical!

As with any mortgage application, if the bank valuation comes in low, then the loan may be declined.

This means that you may be unable to complete your divorce settlement and successfully divide the property.

So how can you control the bank valuation?

The simple answer is that you can’t.

However, as a mortgage broker, we have the ability to order valuations with several lenders before submitting a full application.

You can then apply with the lender that has the most favourable valuation.

In the past, the only way to obtain multiple valuations was to put in multiple applications at the one time.

If you were to do so nowadays, you’d most likely fail credit scoring for all the lenders that you applied with due to the high number of enquiries on your credit file.

As such, your loan application would ultimately be declined.

We know which banks will look favourably at your application.

Please call us on 1300 889 743 or enquire online to find out how we can help you obtain an upfront bank valuation.


Do you need a separation agreement?

If you and your ex-partner were married, then a conveyancer can type up a basic agreement and then stamp the transfer as exempt from duty.

A contract of sale is generally not required.

If you and your ex-partner were in a de-facto relationship then you may need to see a solicitor to get a separation agreement completed, otherwise you may be required to pay stamp duty.

An application for an exemption from stamp duty will need to be assessed by the state government.

It must be fully completed and have all supporting documents attached.

A transfer is a document that is lodged with the government to register the change of ownership and needs to be signed by both parties.

There are a variety of agreement types that can be drawn up between the parties to initiate the transfer process. These range from a Separation Agreement or Consent Order to a Financial Agreement.

You can complete your own agreement if you and your ex-partner choose to do so. This agreement can be found in the ‘Separation Kit’ that is on the Family Law website.

You should seek legal advice from a qualified solicitor who specialises in family law before you apply for a loan to buy out your ex-partner or before you enter into any agreement with them.

We’ve tried to ensure that the information on this page is accurate but family law is a complex area. For this reason, you must seek professional legal advice in order to obtain specific advice on your transfer of ownership.

Tips on separating from your partner

The Australian Securities and Investments Commission (ASIC) MoneySmart website provides a checklist for someone going through separation.

Some of those steps are listed below:

  • Close joint bank account and open up a separate one in your name.
  • Consider cancelling your redraw facility or at least ask your lender that any withdrawals require joint signatures.
  • Contact the Department of Human Services to find out what payments and services you may be entitled to as a result of the separation, particularly if you have children.
  • Divorce doesn’t automatically cancel your will and the beneficiaries you’ve listed so update it with help from your lawyer.
  • Update your superannuation details, specifically the list of beneficiaries.

Apply for a home loan

Do you need a home loan to pay out your divorce settlement?

Our mortgage brokers are experts in divorce mortgages and can help you get approved at a great interest rate.

Please call us on 1300 889 743 or enquire online to find out how we can help you.

If you still have questions, feel free to comment below and we’ll get back to you as soon as possible.

  • cb13

    Hi, my ex defacto partner and I own a unit together in remote country town. Unfortunately the property prices have dropped so low there that the property is now worth less than what we owe on it. So no equity whatsoever. he has offered to buy me out, but how would this work given the current situation and would any bank let him take on such a debt? Are we just stuck with the property until the prices recover in that area?

  • Hi CB

    The bank would lend 90% or 95% of the property value so in this case there would be a shortfall. You or your ex could get a personal loan to fund this if you had a high income.

    The other option is if your ex’s parents own a property they can be a guarantor and then one of our lenders may consider refinancing the full loan amount.

    If those options don’t work then unfortunately you’re stuck for now. Best to make an agreement with your ex as how this will work going forward. In most cases people agree on an amount they can both pay and try to pay the loan off asap to allow the title to be transferred.

  • cb13

    thanks so much for your advice :-)

  • Kat

    Hi, we have recently purchased an investment property and settlement occurs on early December. Both names on the morgage and title. Since then we have decided to seperate. Can one of us move into this investment property, and what would be the process of transferring names from both this investment property and the main home which also has a morgage? Should we inform the bank and our conveyancer before settlement that we are seperating or wait until after settlement to make arrangements?

  • Hi Kat,
    Firstly make sure your mortgage is variable. If you have a fixed loan then it will be costly to change the names on title.
    I’d speak to your conveyancer immediately about your situation as they are on your side.
    As for your bank you are in a difficult situation. If you tell your bank then they may decide to reassess your application and potentially could withdraw your approval. I would discuss this with your mortgage broker right away and they would know what best to do based on the lender you are using. It’s unlikely that you’d have time to change the loan and property to be in one name so likely you’d have to refinance and sort this out after settlement.
    Sorry to hear that you are separating. The best of luck with your situation.

  • Big Mumma J

    Hi there, my husband have been married for 5 years and we are now seeking a divorce. My husband had the house before we got together, however his house was refinanced to now have my name on it aswell a couple of years ago. We have 1 biological daughter together and full custody of 2 children from his previous marriage, however 1 of them wants ro live with me. My husband wants to buy me out but I want to sell and I will NEVER change my mind on that. Can I be forced to be bought out? If I want to just sell and go our seperate ways can my exhusband also flat out refuse this? I dont think he will pass to buy me our anyways…. thanks Jess

  • Hi Jess,
    You’d need to talk to a solicitor about what your husband can or can’t force you to do, I’m sorry I’m not an expert in that area. However from the looks of things if the property is sold or if he buys you out then either way you’re no longer an owner so it shouldn’t affect you too much either way. Of course he has to qualify for a loan and in many cases this is the problem as there is only one income.

  • Jojo

    Hi there
    Me and my boyfriend bought a investment property together around 5 months ago , we do not live in it and we are not married I want to take over the loan bymyself it’s getting rented so I can cover the monthly repayments
    He’s happy to do so , and we’ve kept everything even for what we put into it
    so what is the process of getting he’s name off the loan ?

  • Hey JoJo,

    You’ll first need to get proper legal advice for this. Once you and your partner agree on a price or payments to be made, you will have to refinance the mortgage to a new loan that’s solely in your name (this will include a full valuation). You should then formally commit to a deal with the help of solicitor and a contract after which you settle on the new mortgage.

  • Elaibe

    Hi there, my husband and i are going for seperation. He own the house before we got married and its on his name as well, i didnt have any financial contributions but i lived in that house for 5 years as a homemaker plus we got two kids together. I just found out that he’s applying for a loan sneakily with out my knowledge to refinance the house. My question is as a wife can i stop the bank to to let him loan the money or withdraw prior to our unsettled issues like finances.

  • Hi Elaible,
    You’d need to speak to a solicitor to find out what your options are. In the past we have seen people lodge a caveat on the property to prevent similar actions so that may be one possible option for you.

  • Tiana Basar

    Hi.
    My ex partner and i were together for 6 years…we then brought a house together. We seperated after being in it for two years and also have two children together. The house is up for sale, however he has now changed his mind for the third time and is wanting ro keep it… he went to see the bank a few days ago and now wants to all of a sudden talk to me about having his children more. Could this be so he doesn’t have to pay me out as much if he has the children??

  • Hi Tiana
    Potentially, I’m not an expert in separations and so wouldn’t be able to say how this would affect the division of your assets.
    If your ex needs assistance with a loan to refinance and buy you out then we can help.

  • Julie

    My defacto partner and I have amicabilly decdied to separate and he is happy for me to buy out his share. Is it possible te refinance to get his name of the mortgage and have a family member go on the mortgage to help with the loan without having to pay stamp duty?

  • Hi Julie,
    If you’re buying his share then stamp duty is waived in most instances. If your family member is buying his share then this may not be waived. I’m not sure on this so best to call the Stamp Duty hotline in your state.
    If the property was worth $500,000 and your family member was effectively buying his 50% share then they’d pay stamp duty on $250,000. So usually it isn’t too expensive as it’s not the whole property.
    You need to arrange a new mortgage which is in both names. If you need help with this then feel free to contact us.

  • Julie

    Thank you so much. If I’m borrowing over 80% of the value will I be charged mortgagee insurance again?

  • Yes that’s correct you would be. A guarantor loan would allow you to avoid it https://www.homeloanexperts.com.au/guarantor-home-loans

  • Jenny

    hi, my ex-husband and me have one jointly-owned asset, a rental property, it is current worth $ 400,000 and has no mortgage on it. and if i decided to obtain a mortgage for $200.000 and pay-out for my ex-husband, can i deduct the interest and borrowing expenses against the rental income?

  • Hi Jenny
    Yes I believe you can. You’d need to check with an accountant to be sure. Best of luck.

  • Jason

    Hey guys,
    I was in a 3 year defacto relationship when a mortgage was signed in May last year. In June we separated. My ex has not paid a since cent towards the mortgage nor has she lived in the house. We are on good terms and she is willing to just hand the mortgage over to me which I can afford.
    1. Will this be a straight forward process?
    2. Would the fact the mortgage has been coming out of my personal account for the past 11 months be a factor in proving affordability?
    3. IF she did decide to be “difficult”, would she have grounds to pursue funds from me even though she hasn’t paid a single cent and the deposit came from me?
    4. We did receive the first home owners grant which was part of the deposit. Will costs be incurred because she didn’t live in the house?

    Thanks for all your help!

    Jase

  • Hi Jason,
    Firstly sorry to hear about your relationship breakdown. The advice I give is purely from a mortgage point of view so please speak to a solicitor for legal advice.
    1. From a lending point of view this is relatively straightforward. We would transfer the property to be in your name, most states would waive stamp duty and you’d get a new loan just in your name.
    2. As long as you can afford the new loan based on your income alone then you’ll be ok. That’s how they’ll assess it.
    3. That’s a question for the lawyers! Unfortunately I’m not sure. Fingers crossed she is well behaved on this.
    4. Only one person must live in the property. So you should be fine.
    Good luck!
    If you’d like help to set up your new mortgage then please contact us https://www.homeloanexperts.com.au/free-quote/

  • Kit

    Hi me and my defacto were together 13yrs and bought a house late last year, weve since seperated and both are paying the mortgage but im living in my car while he enjoys the house. I cant keep paying and living like this, what do i do? He wont leave the house. He wont even leave for a single night so i can get a decent sleep

  • Hi Kit,
    Sorry to hear that. You’d have to talk to a solicitor and consider some kind of mediation to come to an agreement. It’s not our area of expertise.

  • Ty

    Hi All, I’ve just separated with my partner of 4.5 years at the start of May. We have just bought a house in January and have two kids under 4 years old. We have come to a mutual agreement that I will move out and keep paying house cost, mortgage, rates, insurance, power, water and pool services. This totals about $650 a week. She will live in the house with the kids and I will see them on weekends.
    When we bought the house in Cairns Qld we got the first home owners stump duty excemption about $10,000 that we didn’t have to pay.
    I’m not sure if we are able to sell the house before we’ve been living in it for a year, or even if because I’ve moved out and I’m the main income provider that we will now get charged this stump duty? She has now said she will sign the house over to me but still live in it. This I understand will require refinancing as she is on the loan too but has no real income as a mother of our kids.
    Any info would be helpful.

  • Hi Ty,
    Change in title ownership will incur stamp duty so in your case, if one of the applicants will move out of the ownership then stamp duty may be charged. It’s best to speak with a solicitor about this. Selling the house before a year is fine but if you have gone through a broker, there may be a short term loan fee charged or minor charges such as discharge fee and settlement fees. If you refinance internally i.e. with the same broker or same lender, then you might be charged with only nominal fees.

  • Yvonne Leggett

    Hi my ex-husband refinance and taken all the equity he will not give me my share so I can move on with my life and he don’t want to grove my share so he don’t have to pay child support

  • Gra

    Hi, my wife and I recently separated and intend divorcing in 12 months. We own our family home as joint tenants. At divorce, can the ownership be changed to tenants in common 50:50 without incurring stamp duty? This is a WA property

  • Hi Gra,
    I’m not sure on that one sorry. You’d need to call the WA State Revenue Office to be sure 08 9262 1100.

  • Gra

    Thanks, I called them, and was advised that provided the ownership ratio, and therefore the benefit to the parties, stays the same i.e. 50/50 ratio, then only a nominal $20 duty applies

  • That’s great news for you! If you need help to amend the loan to be in two accounts so you can keep track of who is paying what then feel free to contact us https://www.homeloanexperts.com.au/free-quote/

  • Emma

    Hi, my husband and i have separated and i am full time carer of our baby daughter. As he is the only one earning he is paying the morgage on our investment property. I am on a pension card now and want to wipe my hands of the property all together as i have no funds to make payments anyway.
    Unfortunately the property has gone down dramatically in value. Is there any way i can give it to him? Could i submit my share to the bank? I just want to be free of this legally. Thanks

  • Hi Emma,
    If the amount owed to the bank is less than 90% of the value of the property now then your husband should be ok to refinance the property and remove you from title. When a title is changed due to a relationship breakdown then in most cases there is no stamp duty (check with your state government).
    The problem will be if the loan is more than 90% of the value of the property. Then there isn’t much that can be done except to wait for the property to go up in value.
    Your ex-husband can call us if he likes and we can complete an assessment as to what is possible.
    Best of luck with your situation, I hope you find a good resolution and move forward with your life.

  • Tom

    Hi. Thanks for the helpful info above. I did have one question though…I am wondering whether I need to pay my ex-partner half the cost of stamp duty on their potential future property? They are insisting that this is ‘common practice’ yet I cannot seem to find any advice.
    Thanks :)

  • Hi Tom,
    I don’t believe this is common practice, I haven’t seen it before. However it’s best to check with a solicitor who specialises in this area.

  • Joseph Mbokotwana

    My life was destroyed when my husband sent me out after 6
    years we have been together. I was lost and helpless after trying so
    many ways to get my husband back to me. One day at work i was distracted
    not knowing that my boss called me so she asked me what it was all
    about, I told her and she smiled and said it was no problem. I never
    understood what she meant by it was no problem getting back my husband,
    she said he used a spell to get back her husband when he left her for
    another woman and now they are together till date and initially I was
    shocked hearing something from my boss. She gave me an email address of
    the great spell caster which helped her get her husband back, I never
    believed that this would work but I had no choice coming into contact
    with the Great spell caster and he asked for my information and that of
    my husband so that he can start the spell casting. I sent him the
    details and purchase the items needed for the spell. Two days later my
    mother called me that my husband was pleading that he wants me back i
    never believed because it was just a dream and i had to rush off to my
    mother’s place and to my greatest surprise he was kneeling down and
    crying, beg me for forgiveness that he wants me and my child back home.
    when i told the great spell caster about the sudden change of my husband
    he made it clear to me that my husband will love me until the end of
    the world that he will never leave me for another woman. Now me and my
    husband is back together and started doing funny things we not done
    before and i am so so happy. Please if you need any kind of help please
    contact the great spell caster. His email is greatestspellcaster001@gmail.com

  • luke

    Hi
    I’ve separated from my defacto 14 months ago from a 9 year relationship. We have 3 kids together. I bought the house in my own name with equity of a joint owned property my brother and I inherited.
    The house is worth about 380k and the mortgage is about 465k the joint owned property is around the 300k Mark which is owned outright and 50/50% which my brother and I owned long before the relationship commenced.
    Defacto has moved out and renting her own place.
    She never made 1 repayment on the property. There was other debts in the time of separation around 40k.
    Where would she stand with property settlement?
    Thanks.

  • Hi Luke,
    It’s hard to say. We can assist with sorting out a refinance of the loans for a separation however we can’t offer legal advice. I’d recommend that you find a good solicitor. I am aware that there are different rules for property settlements for short, medium and long term relationships but I am not sure of the details sorry.

  • Ken

    Hi guys, our home has only 50k equity but my wife and I will be separating at the end of the year. I desperately want to stay in the house and continue the mortgage (as it’s cheaper than renting) and was considering trying to find an investor who’s not a tenant) to add as a borrower/guarantor to pay, say, 40% of the loan per week. I’m in Qld and can’t find anything about doing this or how to do it. The bank should OK because my wife has agreed to keep a 10% payment up so she retains a small mount of equity when the house sells down the track (along with me and an investor..) Any thoughts or leads would be great, thanks, Ken.

  • Hi Ken,
    As a general rule this is a complicated solution and when there are too many moving parts it generally doesn’t work for one reason or another. It’s best to keep it simple where possible.

    Your wife can remain as an owner however she is liable for repayments on the loan. The simplest solution may be:
    – You remain as owners 50/50
    – For her it is an investment property. You pay her 50% of the market rent and she pays 50% of the home loan, council rates, repairs and water rates (but not other expenses).
    – For you it’s a home.
    – You agree on a date to sell the property. Realistically this arrangement doesn’t stay for long.

    Another option is you getting in an investor. It’d be the same as above except you have an investor instead of your wife.

    Another option is that you move out and rent the property out.

    Another option is that you sell now.

    From experience I can say that getting an investor to own part of the property is unlikely to work unless it’s a close family member. If you cannot afford the home on your own then consider moving in with family and renting the home out OR selling the property.

  • Ken

    Thanks very much for the quick response and options.
    Looks like renting a room or 2 out for 40% may be my only option here as a stop-gap (she can’t afford more than 10%, I have no family and renting it out would be the same as selling it). Thanks again for the info, Ken.

  • Just FYI most lenders cannot accept income from a housemate to help show that you can afford the loan. If you’ve reached an agreement with your wife then please feel free to call us and we can discuss options for how to prove that you can afford the loan on your own.

  • Ken

    thanks.

  • Maxine Sinclair

    Hi, needing some advice please. 3 people on home mortage, myself, my brother and his ex girlfriend (no longer together). My bro and her were paying the mortage for 5 years then the girlfriend walked out and hasn’t paid any repayments at all in 5 years. My brother is in a new relationship living in the home which he and his new partner are paying the mortage.

    The Ex is now demanding the house be sold. If she tried to force the sale, does my bro, myself and his new girlfriend have any rights. Confusing I know. Appreciate any help n advice.

  • Hi Bec,
    Sorry I wouldn’t know the answer to this one. We can assist with refinancing the loan and paying her out however we’re not experts in family law. I’d recommend that you speak to a solicitor. Good luck!

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  • Heidi Murphy

    Can I refinance my mortgage with the assistance of my new partner?

  • Hi Heidi,
    Yes you can. However the ownership of the property may need to change if your previous partner is still a partial owner.

  • Kylie Watt

    Hi purchased a house over eight years ago and shortly seperated from my husband. I moved into the house alone and have paid all mortgages and rates myself. Do I have to pay him out if I can prove that all payments have been made my myself. He is happy to have his name removed. We have not divorced. Thanks

  • Hi Kylie,
    Sorry I wouldn’t know the answer to that one. I can only answer home loan related questions to a separation, whereas asset division would fall into family law which I’m not an expert in.
    Good luck and I hope it goes well for you.

  • Rosey

    My partner separated with his defacto a year ago and he had a joint mortgage with her. Now we are planning to refinance that house. Can we refinance his mortgage and buy out her share?

  • Hi Rosey, yes you can. However, please make sure the ownership of the property has been amended. If your partner’s ex is still a partial owner of the property, it needs to change. If you are not on the title of the property, I’d recommend that you consult with a solicitor.
    We can assist with refinancing the loan and paying her out. You can contact us on 1300 889 743 or fill in our free assessment form https://www.homeloanexperts.com.au/free-quote/ to speak with one of our refinance specialists.

  • Yvette Butterfield

    Hi there, my partner separated from her ex about 8 years ago & her name is on the mortgage still even though she does not live in the house nor has she ever made repayments to the mortgage. The only reason her name is on there is because they bought the house together and She worked at a bank at the time so was able to get a discounted home loan. She wants & needs to get her name off so that we can look at buying a property together in the future. What can she do to get her name off? Her ex tends to fail to make repayments on time occasionally so refinancing would probably not work out. Desperately want to be rid of this financial attachment especially if he fails to make any further repayments & she ends up with a black mark on her name from it. Please help!

  • Hi Yvette,
    We’d need to assess your partner’s ex’s financial situation. If it’s been owned for > 8 years then likely it has increased in value so the ex would have a lot of equity. This means that even if they have missed a few payments they can likely qualify for a loan. This is of course assuming they can afford the debt and meet any other policy requirements.
    I’d recommend that you ask the ex to call us on 1300889743 and ask for Kameron who is our specialist in this area of lending.
    Otherwise there isn’t much you can do. Some lenders may allow you to buy a new property even though you own an existing property but they would take 50% of the debt on the ex’s property into account when assessing your ability to make repayments. This is known as ‘common debt reducer’ and is a rare policy that few lenders have. Most lenders would assess 100% of the debt as being in your partners name which means in their view you cannot afford to buy another property.

  • Codie

    Hi,Hi,

    My partner and I have very recently seperated. We have been together 3 going on 4 years. We have also very very recently purchased a house. The house has not settled but is unconditional and the cooling off period has passed. Our next step is to divide the property. We haven’t even moved into the house or payed anything of off the house. We were lucky in that his parents have gone garuntee’s for us so no deposit was payed. I was wondering what our options might be? I know neither one of us can “take” over the mortgage as we won’t have the finances or income to support the loan solo. Is it possible that one of us could get another person to apply to be on the loan and pay the other person out? Any guidance would b great!

    Thanks,
    Codie

    My partner and I have very recently seperated. We have been together 3 going on 4 years. We have also very very recently purchased a house. The house has not settled but is unconditional and the cooling off period has passed. Our next step is to divide the property. We haven’t even moved into the house or payed anything of off the house. We were lucky in that his parents have gone garuntee’s for us so no deposit was payed. I was wondering what our options might be? I know neither one of us can “take” over the mortgage as we won’t have the finances or income to support the loan solo. Is it possible that one of us could get another person to apply to be on the loan and pay the other person out? Any guidance would b great!

    Thanks,
    Codie

  • Hi Codie,
    Yes you can make an agreement as to who will take over the property. Likely whomever has the strongest income. Then you can refinance the loan & change the title to just be in that person’s name.
    Ideally you should seek legal advice before doing this. If the property has not yet settled then I would act quickly as it may be possible to make this change before settlement, I’m not 100% sure as this would be a question for your conveyancer / solicitor.

  • Codie

    Thank you for the quick reply! Is this step possible within the first year of purchase and what is the next step if neither qualify for the loan solo.

    Thanks

  • Yes this can be completed in the first year. If neither qualify for a mortgage then you can consider changing it to be an investment property (careful if you got the first home grant!) or selling the property. Selling may not be possible if you borrowed more than 100%. You could potentially get personal loans to cover the shortfall between the sale price and the amount that you owe, but that is very messy.

  • Keisha Clegg

    Back in 2016 we had one major drawback. Hubby lost his job, I had an accident that made me quit my job as well. We collected thousands of money from our Home Equity line of credit (HELOC) account which works sort of like a credit card to raise our son through college. This caused our credit scores to drop drastically, the bank almost terminated our line of credit and at that point I almost regretted my existence in life. I am using this opportunity to say a BIG THANK YOU to my sister and her BFF she introduced to us as a credit score hacker and counselor. He cleared our HELOC debt of $142,000 and raised our scores to 765 and 758. My special thanks goes to this genius hacker, we purchased our second home a couple of weeks ago for our son. As we have promised to give him more clients if he should successfully fix our problems. We are living testimonies and confident of this miracle worker to handle all jobs, I will implore everyone facing challenges with credit scores, credit report,bankruptcy,mortgage issues to reach him on:
    pyramideye.hack ( A T outlook . com ) and be sure to give testimonies. Thank me later.

  • Jo

    Hi there
    My wife and I bought a house 10 years ago she left the country and has never returned she refuses to sign divorce papers over the years is there any way to take over the mortgage in just my name? I cannot get in contact with her.

  • Hi Jo
    Unfortunately I don’t know how you would be able to do this. I’d suspect that talking to a lawyer would be the best course of action. There may be some laws regarding absentee owners that you may be able to rely on.

  • Lisa Fischer

    Split with partner is very straight forward given that we are not married, no children involved and the only thing we have an interest together in is the home valued at $400k owing nothing on it. Do we need a solicitor?

  • Jo

    Thank you for your reply

  • Hi Lisa,
    I’d recommend that you seek legal advice. Note that lawyers may have a vested interest in creating a fight where there isn’t one so pick your solicitor carefully and give clear instructions that you want to make an amicable agreement.
    If you have already agreed among yourselves on how the house will be split then you can do a transfer of land with the assistance of a solicitor or conveyancer. If a loan is required to pay out the other partner’s share then a mortgage broker can assist with this.

  • Chalaney

    My defacto partner and I got separated two weeks ago. We bought our first home just 6 months ago and I don’t want to sell the house. However, I’m afraid my sole income is insufficient to buy her out and refinance in my name alone. How should I proceed with this situation?

  • Hi Chalaney,
    Firstly, you and your partner should agree on a price or payments to be made to the other. Next, if your income isn’t enough to service the home loan, you could ask someone to act as your co-borrower (your parents, relatives or friends) in order to afford the new mortgage and buy out your ex partner.

  • kimberly

    Me and my wife are getting a divorce soon. We are joint title holders of our property and have paid of 35% of our mortgage. I want to keep the property for myself and remove her from the title. What would I need to do to buy her out?

  • If you’re looking to buy out your partner’s share of the property, get a legal adviser to divide the assets and liabilities after your divorce. You can then proceed to refinance the joint mortgage to a new home loan. The banks will reassess your financial situation to see if you can afford to pay the remaining debt on your own and meet the standard bank policy without your partner’s income.

  • Rasford

    We have bought a house with our parents and we would like to buy them out. How does that work?

  • Hi Rasford,
    You could refinance your home loan https://www.homeloanexperts.com.au/home-loan-articles/refinance-home-loan/ and transfer the property title into your name. Also, you should seek legal advice from a qualified solicitor who specialises in family law before you apply for a loan to buy out your parents or before you enter into an agreement with them.

  • Ann Rock

    I Refinanced my mortgage and had to add my husband to the loan. Now I want him removed from the loan. I did own the home fully prior to marrying but my husband really couldn’t hold a job and is lazy . he hasn’t worked in many years and I have been paying the mortgage and all other living expenses. I’m currently paying 9.5% interest which I’d ridiculously high. I want to divorce my husband and get my house back in my name and refinance to loan. What’s the best way of getting my house back?

  • Hi Ann,
    You can refinance your home loan to a lender with a lower interest rate but you have to make sure all the repayments are being made on time. It enables you to take your home loan to a major lender. Also, please get legal advice from a qualified solicitor to get the figures for buying him out and then refinance your mortgage. We can help you get a good deal.

    Call us on 1300 889 743 or fill our free online enquiry form https://www.homeloanexperts.com.au/free-quote/ and one of our mortgage brokers will call you to discuss your situation.

  • Craig

    My partner and I separated about 2 years ago we were in a defacto relationship for approx 8 years, about 5 years ago she and I took out a joint mortgage together Equity in the property was $40000.I have paid out her share of $20000 gave her 80% of furniture she requested, I also have been living in the property myself for the last 12 months and have been making all loan repayments and associated costs with premises e.g Rates, Power, I am looking at the easiest way refinance the loan into my name only, and assistance would be appreciated

  • Hi Craig,
    We can help you refinance your loan and bring the title in your name but please note that any loans below $200,000 may entail brokerage fees. Call us on 1300 889 743 or fill our online assessment form http://www.homeloanexperts.com.au/free-quote/ and one of the refinance specialists will discuss about your situation.

  • Scott

    Hi,

    My wife, her brother and I have a mortgage together equal share (supposedly). My brother in law hasn’t made any contribution to the mortgage in over a year which we have proof of as well as no contribution to the maintenance and renovations of the house. Wife and I have spent over $10k during the renovations getting ready to be sold as we all agreed it was best for everyone. We recently had the house up for sale and received a couple of good offers but because the brother in law wanted more money, we signed the papers but he did not as he wanted more. My question is can we take out a equity loan out for $80k thus taking his name off the mortgage and pay him out. Myself and my wife can make the repayments but don’t have savings as we paid the renovations thinking we would make it back when it sold..

    Thank you
    Scott

  • Hi Scott,
    You can take the equity loan, but you need the consent of brother-in-law as he’s also in the mortgage. If he’s no issues with that, then you can get the loan and buy him out. Else, if he doesn’t agree, then you can refinance the loan with another lender and buy him out.

  • Rebecca

    Hi.
    I bought a house with someone two years ago and they never moved in on paid the mortgage. I have done it solo, I went to my bank and they said I can’t apply through them to change the house into my name as I dont earn enough on paper to cover payments. I have been paying it myself as I stand now anyways. I don’t have enough savings to pay to change the deeds and new mortgage deposit. The other home owner wants nothing from me just to be off the paperwork, maybe I can remortgage?
    Thankyou

  • Hi Rebecca,
    You need to be able to service the home loan by your income if you want to release them and get the mortgage on your name. If your income isn’t sufficient, then you can rope in another partner or a friend and then refinance the loan to your name. Call us on 1300 889 743 or enquire online https://www.homeloanexperts.com.au/free-quote/ and speak with an experienced mortgage broker whether you qualify for a loan or not.

  • Karen Taylor

    Hi
    My husband and I have separated and I’m hoping to buy out his share of the property. I purchased the property 8 years ago and we have only just added my husband to the loan 6 months ago by refinancing for some debt consolidation. I am the only one on the title. The valuation was around 600k and the loan is 300k. What do I need to do to get the process moving?
    Thank you

  • Kw

    My defacto of 11yrs had owned the house we live in outright before I moved in. However it needed a new roof, he couldn’t afford it so he mortgaged the house for a loan of $20000 but could only do this with me being on the loan as he cant afford repayments. Can I buy him out if I’m not on the title? Or what happens if we seperate & I’m not living in the house, will I have to continue paying the loan?

  • Kristy Fitzgerald

    I brought a home 12 years ago and I have refinanced so we can renovate and added my partner to the loan and we will be going halves in the mortgage and paying extra payments when we can.

    He is not on the title but I want him to have rights should anything happen to us so that he would be entitled to any extra money he has been putting towards the loan.

    Is having him on the home loan but not the title enough or would we need to get it legally documented,

  • Hi Kristy,
    Generally, partners not on the title but on the home loan contributing to paying the home loan have a claim to part of the property under family law property settlements. This is simply general advice and falls outside our area of expertise so, you should absolutely seek legal advice. Please consult a family law solicitor regarding the matter.

  • Jared

    Hi, what would be the best way to buy out a co-owner? The co-owner is my father-in-law, he owns 50% and my husband owns the remaining half.

  • Hi Jared,
    You could either increase the loan amount with the current lender and use the funds to buy out the co-owner or refinance to a different lender depending on the current loan balance and the value of the property. If you have enough equity in the property you should be able to buy out your father-in-law as long as you can demonstrate affordability.