Changing loan from one name to two

Hi everyone,

thanks in advance. I'm pretty sure I know the answer but I'd like to hear what others think.

I have an IP title and mortgage just in my name. It's refinancing time, it's at 4.8% - can you imagine?

Anyway, thanks to the new laws my broker says gone are the days of a single name if you're married and living together. The refinancing will need to be put in both of our names. Not ideal.

Obviously, I claim 100% of the interest at the moment. Does this mean that when it goes into both our names that I can only claim 50% of the interest? The title will remain in my name, and I'd assume all the expenses are 100% deductible. So here are my questions.

1. Can I only claim 50% of the interest?
2. Are all the usual costs, insurance, repairs, etc still able to be 100% claimed by me?
3. Is there any way around this?

Since the interest rate is so high anyway, only claiming 50% but dropping the rate by half will approximately be a similar amount of total costs, but obviously not deductions.

Thanks!

 

That doesn't make sense. If you are the owner gone are the days of putting the spouse who is a non-owner on the loan - tightening up of the code of banking practice happened last year:

Loan Tip: Co-Borrowers, new requirements Loan Tip: Co-Borrowers, new requirements

What you would probably have to do is make the spouse a guarantor with you still the sole borrower (and sole mortgagor).

If you could get a loan in both names generally this won't affect tax deductions at all.

 

Sorry, maybe I misunderstood.

We are also splitting the loan to draw on equity, so perhaps the broker meant the new loan, not the old loan? I'll have to confirm.

 

Doesnt seem right at all. Lets go back to the 50s and make sure the hubby approved a loan for the wife ?
Cant you service the loan ? High rate and issue seems to indicate something.