Finding the right home loan for you and your family is an important starting point towards building a strong financial future.
A refinancing will offer you many benefits including; reduced monthly repayments, access to lower interest rates, getting rid of high upfront costs and consolidating multiple debts into one personal loan.
What is a ‘Family Refinancing’?
A family refinancing (or joint mortgage) is made up of two or more people who are related by birth, marriage or through adoption. These individuals may share the same address but they do not necessarily have to live at the same property. The borrowers must be on the title deed together in order for them to qualify for this type of family refinanced loan. This can be beneficial in a number of cases including, where a family owns one property and has an outstanding loan on it. This is the case when parents have purchased a home or investment for their children to live in but they are still making the repayments on it. In this situation, both parties will need to refinance together so that they can combine both debts into one personal loan with reduced monthly payments and lower interest rates.
Family refinancing is not limited to just borrowers who own homes together. It can be used by all related individuals such as siblings or even cousins that wish to consolidate their existing loans onto one cheaper personal loan. The process is exactly the same, however instead of combining two mortgages into one, you’re an additional person’s name onto your existing loan. This can be especially beneficial as it is two, three or four of you who will benefit from the reduced monthly repayments and more attractive interest rates as opposed to just one borrower on his or her own.
How do I qualify for a family refinanced home loan?
Whether you wish to change an existing loan by joining two borrowers together or include a third party onto your mortgage agreement, each lender has their own minimum requirements that applicants must meet before they will be approved with a personal loan modification. To begin with, you will have to be seen as a low-risk investment in order for them to give out money – this means that you’ll need to demonstrate that you have been paying back your debts responsibly with no defaults or missed payments. On top of that, the lender needs to ensure that you are worthy enough to be awarded a family refinanced home loan with them.