Can a partner join in an existing bond as an equal shareholder, does the bank need to redraw the agreed contract and do the whole process from ‘scratch’, and what steps can one take to make that happen?
SA Home Loans Client Services replies:
You may provide your partner with a half share in the property. The existing bond would have to be cancelled and a new bond would need to be registered in the joint names of you and your partner. So from a home loan point of view, it would indeed be treated as a new application “from scratch” as you suggest, with all the normal credit, valuation and legal processes taking place. It’s also important to know that, because it is effectively a new bond, this will attract initiation fees, transfer duty and legal fees.
At the end of the process, which will take up to 3 months to complete, there would be a new mortgage bond granted and registered, with both registered owners recorded on the Title Deed.
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Courtesy of Property24 - 04 Jun 2020
Contact our EVFinance department for more information about homeloans - Chantal Ramsudhar on 082 880 4724
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