Divorce Mortgage Advice – How to buy out Ex-Partner
Are you getting divorced or separated?
More than half of Australian marriages ends in divorce with many more de-facto couples separating after purchasing the family home. What should you do with your home or investment property when you decide to go separate ways?
Checking your borrowing power is important when looking to move the property from two names to one. You’ll find that your borrowing capacity may reduce when applying on your own. It is important to note that if you’re wanting to borrow over 80% of the property value, then Lenders Mortgage Insurance will be applicable – even if this is something that you have previously paid.
Things To Consider
It is important to recognise that the separation process can be a messy one and difficulties may arise during process. Difficulties that may arise when going through a property split are things like agreeing on settlement figures, credit blemishes from unpaid bills during the devoice proceedings, or mortgage repayments halting.
Generally speaking stamp duty will not be applicable when paying out the share of a property owned by your ex-partner. This isn’t limited to the family home however and is also applicable to investment properties that may be bought out from the split. As this is a complicated area of law, it is advisable to speak to a lawyer or solicitor to confirm if stamp duty is applicable (when transferring the ownership).
Do you need some more information regarding divorce or separated home loans? Our mortgage brokers can help you in this challenging time. We can help get you approved with a great interest rate!
Please call us on 1300 088 065 or complete our contact us form to find out how we can help you.