Names On Loans Question

Currently, we have two names on a loan with Westpac

They have suggested if we are looking at reducing it to one name then we can either refinance with them (if income can support this) or if due to legal matter (i.e. separation) go into the branch and sort there

Could this also be achieved by refinancing elsewhere, from two borrowers to one? Would you just need sign-off from the other person or similar?

The loan with WBC is <75% LVR PPoR and the rate is 4.33% variable,which is crazy (having come of IO)

 

Refinancing means paying one loan out with another. One could borrow and pay out the loan without the permission of the other. But where the mortgage needs to be discharged all mortgagors will need to sign.
Since you don't mention changing ownership it seems there must be one owner and thereforeone mortgagor.

 

Yes, one owner, but this loan in both names (as with some others)

 

Is the title under both names as well ?
If it is then you'll need to organise a transfer and potentially pay stamp duty as well since its an investment.

However long story short, yes you can refinance it back under your name assuming servicing is fine. Internally with westpac or externally.

 

In that case just one mortgagor so you can refinance and remove the non-owner as a borrower, without their permission.


There is no point in being on a loan to a property if it is not needed for servicing - except for that person to strengthen a family law claim.

 

I didn't think this was usual practice. I thought all the people on the loan would have to own the security (the property) for the loan?

 

No. Trustees and spouses are the main exceptions.

 

What a battle

WBC want her to sign the discharge paperwork also but she won't, even though ultimately it's beneficial to her to do so, as she wants to get a loan in the near future under her name

She doesn't contribute to this loan, or one of the other property loans, only the one that's she's residing in

A pain, as I'm paying 4.3% with WBC for this property and can refinance to a much better rate IF i can get the loan discharged from WBC

 

That's one of the disadvantages of a joint loan. But if she is not a mortgagor she shouldn't have to sign. Speak to their complaints person.