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QLD Adding My Name to a Home Loan?

Discussion in 'Property Law Forum' started by Michelle Scovell, 10 June 2015.

  1. Michelle Scovell

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    My husband is buying his own home. His previous wife, who is deceased, still has her name on the bank loan. The bank won't allow me to be put on the home loan as his wife. However, we have 50% ownership share in the land, registered with the State Revenue Office. If my husband was to die, he was told that the bank would sell the home at market value to re-coup the outstanding mortgage. (The bank never put insurance on my husband's life when he took out home loans).I want to know where we stand now as to the existing loan, and having my name added to it because we are getting older and the chances of re-financing are probably slim.
     
  2. Ivy

    Ivy Well-Known Member

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    Hi Michelle,

    Please provide the following information:
    1. Who told your husband that the bank would sell the home if he was to die? A property lawyer?
    2. And are you and your husband tenants in common or joint tenants?
     
    Tim W likes this.
  3. Tim W

    Tim W Lawyer

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    ...and, is the loan up to date?
    That is, has he kept up with the payments?
     
  4. Michelle Scovell

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    Yes the house payments are all up to date. Most likely in advance .
    A bank staff member said that the property would have to be sold.
    Joint tenants. I hope this helps.
     
  5. Ivy

    Ivy Well-Known Member

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    Hi Michelle,

    You and your husband should read the mortgage agreement carefully. There should be a clause that describes what happens upon the death of the mortgagor.

    However from property law principles, as a joint tenant the property passes automatically to you upon the death of your husband.
    And if you aren't a party to the mortgage, it would follow that the bank would be limited in its scope to force a sale of the property (or to recover any money from you) once you became the sole owner. It might be a different story if the two of you were tenants in common.

    As far as I see it, it is the bank that is putting itself at risk here and as far as I am aware, banks are usually reluctant to grant a mortgage to only one joint tenant for precisely this reason.

    I think it is worth going to a property lawyer with your mortgage documents and discussing what options you and the bank have.
     
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  6. Michelle Scovell

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    I will look into that
     
  7. Tim W

    Tim W Lawyer

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    I agree with @Ivy.
    I would add the further suggestion that, when dealing with the bank,
    that your husband speak to a branch manager or the in-branch mortgage person.
    There is little if any value talking to third party staff in banks' overseas call centres.
     

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