Add Someone to Home Loan? Here's How to Simplify (2026)

Have you ever found yourself wondering if you can add someone to your home loan? Perhaps your financial circumstances have changed, or you're merging households and need to adjust your mortgage. Whatever your reason, adding someone to your home loan can be a strategic move to manage your mortgage more effectively. However, it's crucial to understand the implications, requirements, and steps involved to ensure it aligns with your financial goals.

Understanding Adding Someone to Your Home Loan

Adding someone to your home loan involves incorporating another individual as a co-borrower on your existing mortgage. This could be a spouse, partner, or family member. The co-borrower will share legal responsibility for the loan, meaning they are equally liable for repayments. This process can be beneficial in terms of sharing financial burdens or increasing borrowing power, but it's essential to consider the legal and financial implications carefully.

Interest Rates and Requirements

Before adding someone to your home loan, it's important to understand the current market rates and eligibility criteria. As of 2026, interest rates for home loans in Australia range from 6.49% to 12%, depending on the lender and type of loan. The rates fluctuate based on the Reserve Bank of Australia's monetary policy and economic conditions.

Eligibility criteria generally include a good credit score, stable income, and a low debt-to-income ratio. Each lender may have specific requirements, so it's imperative to consult with a mortgage broker like Esteb and Co, who has access to 83+ lenders, to find the best fit for your situation.

Steps to Add Someone to Your Home Loan

Adding someone to your home loan is a process that requires careful planning and execution. Here’s a step-by-step guide:

1. Assess Financial Impact: Evaluate the financial implications for both you and the new co-borrower. Consider how it will affect your borrowing power and individual credit scores.
2. Consult Your Lender: Contact your current lender to discuss the possibility and requirements for adding a co-borrower. Ask about any fees or changes to your existing loan terms.
3. Reassess Property Value: Your lender may require a new property valuation to ensure the loan-to-value ratio remains acceptable.
4. Submit Application: Fill out the necessary paperwork with your lender, providing all required documentation for both parties, such as identification, proof of income, and credit reports.
5. Legal Advice: Consider seeking legal advice to understand the implications of joint ownership and responsibility.
6. Approval and Documentation: Once approved, your lender will update the loan documents to include the new co-borrower.
7. Review and Sign: Carefully review the updated loan agreement and sign the documents to finalize the process.

Tips and Considerations

Adding someone to your home loan is a significant decision that requires careful consideration:

• Financial Stability: Ensure that the person you are adding has a stable financial background to avoid future complications.
• Credit Impact: Be aware that the financial actions of the co-borrower can impact your credit score and vice versa.
• Ownership Shares: Clearly define the ownership shares and responsibilities in writing to prevent disputes.
• Exit Strategy: Have a plan in place for scenarios such as relationship breakdowns or financial hardship.
• Consult with Experts: Leverage the expertise of mortgage brokers like Esteb and Co to navigate the complexities of adding a co-borrower.

Frequently Asked Questions

1. Can I add someone to my home loan without refinancing? It depends on your lender's policies. Some lenders may allow it without refinancing, while others require a new loan application.
2. Will adding someone to my mortgage affect my interest rate? Potentially. Lenders may reassess the loan terms and interest rate based on the co-borrower's financial profile.
3. Is there a fee for adding someone to my home loan? Yes, there might be fees involved, such as administrative charges or valuation fees. Check with your lender for specifics.
4. Can I remove someone from a home loan later? Yes, but it usually requires refinancing the loan in your name only, subject to your financial capability.
5. What happens if the co-borrower defaults on payments? Both parties are equally responsible, meaning you will need to cover missed payments to avoid credit damage.
6. How does adding a co-borrower affect taxes? Tax implications can vary, so it's wise to consult a tax advisor for personalised advice.
7. Can a co-borrower be someone who doesn’t live in the property? Yes, a co-borrower does not necessarily need to reside in the property, but their financial contribution and responsibilities remain.