Quote:
Originally Posted by blinkandimgone
I am listed on the title of our home, not listed on the mortgage. It changes nothing either way whether I'm listed on one or the other or both or none as we are legally married. We made sure my name was on the title because when we bought the house we were common law and we both wanted to make sure my name was on it so the kids and I were protected should we decide to split.
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You did that for family law purposes. I am speaking from the lender's perspective as to protecting their interests in the event of a default. I would think that they would only be willing to give a mortgage if all parties on title were listed in the mortgage charge, so they could go after all of them in the event of a default.
I suppose a lender might be willing to advance a mortgage if the loan amount was well and truly covered by the mortgagee's % interest in the property e.g. if the property is worth $400K and is held jointly with a spouse, the bank might only be willing to lend a % of one spouse's $200K interest in the property if that spouse was the only one listed on the mortgage. If they lent more than $200K, the bank would only be able to go after one spouse's 50% interest if they had to foreclose. Why would a bank do that?