Including Brother in Home Loans and Title?

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1 July 2014
Hello. I am not sure if my question is a legal one however my mortgage broker has asked me to seek legal advice.
My partner and I are only able to take out a mortgage for the required amount if we have my brother included in the home loans and property title. He only needs to be a 1% owner however he is needed because of his income.
My brother is more than happy to do this however my concern is the following:
Under property law will this affect his own borrowing capacity if he was to want to by a home in the near future?

Thank you.

James D. Ford - Solicitor

Well-Known Member
LawConnect (LawTap) Verified
Hi, my assumption is that your mortgage broker probably knows the answer to this question better than anyone as they are in the business of obtaining loans for people, but has a conflict of interest in answering the question for you...

YES, if your brother is a co-owner of your property and a signatory on your loan it will impact on his own ability to borrow other money.

If he has enough income, it might not stop another loan, but it would definitely reduce the amount he would be able to borrow due to the fact that he has responsibilities to contribute under the terms of your loan, should you for any reason be unable to make your mortgage payments.

Kind regards, James.