Removing a Borrower from the Mortgage – How to Stay in the Apartment and Start a New Chapter
Divorce, separation, or simply a change in life circumstances – there are many reasons to want to remove a borrower from the mortgage. The good news: it's possible, and in many cases the remaining borrower can go on living in the apartment and start a new, calmer chapter. You just need to understand what the bank checks and how to prepare.
Why doesn't it happen automatically?
When you took out the mortgage together, the bank approved it based on both of your incomes. If one borrower leaves, the bank needs to be convinced that whoever stays can meet the payments alone. That's why removing a borrower requires the bank's approval and the signatures of all parties.
What does the bank check?
Ability to repay – whether the remaining borrower's income is enough for the monthly payment. To understand the calculation, read the guide How Much Mortgage Can You Get.
Credit data – a sound financial record for the borrower who stays.
Property value vs. loan balance – sometimes the bank will ask for an updated appraisal.
Guarantors – in some cases the bank will ask for a guarantor, or a new borrower in place of the one leaving.
And what if you also need to buy out your partner's share?
This is the common situation in a divorce: one side stays in the apartment and pays the other for their share. In that case you take out a new mortgage or increase the existing one, and it's usually also the right moment to look at mortgage refinancing – building a new mortgage mix that fits a single borrower's income.
4 tips that make the process easier
Plan the payment in advance – work out what monthly payment is comfortable for you on your own, and set the term and the mix accordingly.
Sort out your checking account – a separate, orderly account in the name of the remaining borrower.
Don't wait until the last minute – coordinating with the bank takes time, especially when dates in the agreement between the parties also need to line up.
Check several banks – you don't have to stay with your current bank. Sometimes another bank will offer better terms.
If the bank says no
A refusal from your current bank isn't the end of the road. You can add a guarantor, extend the term to reduce the payment, or go to another bank. Non-bank lenders can also be a solution – we went into detail in the article Mortgage Declined? What to Do Now.
The goal is for you to stay in your home, with a monthly payment that gives you peace of mind.
Book an introductory call – we'll review your situation together and build a plan tailored to you.
This article is for general information only and does not constitute personal advice.
