All About Joint Mortgages: Can Multiple Parties Obtain a Mortgage Together?
With homeownership being quite costly and getting more expensive as time goes on, the choice to get a joint mortgage is increasingly becoming a viable option to people. A joint mortgage is a mortgage you can take out with another individual or multiple individuals.
Commonly, a joint mortgage occurs when you are taking out a mortgage with a partner or spouse. However, you can also choose this type of mortgage with a friend or investment partner depending on your situation. Joint mortgages for individuals in business relationships, where an income property is involved, has garnered a lot of popularity.
In terms of qualifications, an individual may need another person’s income to secure a home loan to be approved for it. It’s considered profitable since the mortgage has less fees, more purchasing power, and shared responsibilities. On the other side of things, it can be disadvantageous due to interpersonal problems and differing intentions which is expected when you make a huge commitment like a mortgage with another person.
The alternatives to a joint mortgage, if you aren’t willing to make that big of a commitment, are that you can either co-sign a mortgage, have a guarantor, look into the First-Time Home Buyer’s Incentive, or buy a less costly home. If you’re considering a joint mortgage, consider all possibilities carefully and discuss them openly with your potential partners. Before leaping into homeownership together, talk to a mortgage professional today at The Mortgage Division at (416)-621-7501.