Add Someone to a Mortgage? Uncover the Truth (2026)

You've been managing your mortgage solo for a while now, but life circumstances change. Whether you’re considering adding a partner, family member, or friend to the mortgage, it’s crucial to understand the implications and processes involved. This decision can offer financial relief and potentially improve your borrowing capacity, but it also comes with its own set of challenges and considerations.

Understanding Adding Someone to a Mortgage

Adding someone to your mortgage means that the individual becomes a co-borrower. This can be beneficial in several ways, such as sharing the financial burden or qualifying for a better interest rate. However, it is essential to note that this also means shared responsibility for the loan repayments. In Australia, the process involves legally documenting the change and obtaining the lender's approval.

Interest Rates, Requirements, and Options

When considering adding someone to your mortgage, it's crucial to be aware of the current market conditions and specific requirements set by lenders. As of 2026, interest rates for home loans in Australia range from 6.49% to 12%, depending on the lender and the borrower's financial profile.

Eligibility to add someone to a mortgage often includes:

• Good credit history of the new borrower
• Stable income and employment status
• Capacity to meet the lender’s serviceability criteria

Lender	Interest Rate Range	Key Requirements
Bank A	6.49% - 8.5%	Credit score above 700
Bank B	7% - 9.75%	Employment stability
Bank C	6.75% - 10.25%	Two years of income documentation

At Esteb and Co, with access to over 83 lenders, finding a suitable option that aligns with your needs and circumstances can be more efficient and tailored to your specific situation.

Steps to Add Someone to a Mortgage

Adding someone to your mortgage involves several steps. Here’s a concise guide to help you through the process:

1. Evaluate Your Current Mortgage: Review your current mortgage terms to understand any conditions or penalties for making changes.
2. Check Eligibility: Ensure the new borrower meets the lender’s criteria, such as creditworthiness and income stability.
3. Contact Your Lender: Inform your lender about your intention to add a co-borrower. They will provide specific instructions and necessary documentation.
4. Submit Application: Prepare and submit a joint application including detailed financial information for both parties.
5. Legal Documentation: Work with a conveyancer or solicitor to update the property title and mortgage documents to reflect the change.
6. Approval and Finalisation: Once the lender approves, finalise the paperwork. Ensure both parties understand their rights and obligations under the new agreement.

Tips and Considerations

Before adding someone to your mortgage, consider the following expert advice:

• Communication is Key: Discuss financial goals and responsibilities with the potential co-borrower to ensure a mutual understanding.
• Seek Professional Advice: Consult with a mortgage broker or financial advisor to evaluate the financial implications and benefits.
• Understand the Risks: Consider the potential impact on your credit score and financial future if the co-borrower is unable to meet their obligations.
• Review Insurance Policies: Update life and mortgage insurance policies to cover both borrowers adequately.

Frequently Asked Questions

1. Can I add someone to my mortgage without refinancing?
Typically, adding someone to a mortgage requires refinancing the loan. This process involves reassessing the terms and conditions with the lender.

2. Will adding someone to my mortgage affect my interest rate?
It might. If the new co-borrower has a strong financial profile, you might qualify for better interest rates. However, it depends on the lender's assessment.

3. What happens if the co-borrower can't make payments?
Both parties are legally responsible for the mortgage repayments. If one party defaults, the other must cover the shortfall, impacting both credit scores.

4. How long does the process take?
The process can take several weeks to a few months, depending on the lender's requirements and the complexity of the application.

5. Can I remove someone from a mortgage later?
Yes, but it generally requires refinancing the mortgage again, subject to the lender's terms and the remaining borrower's ability to service the loan alone.

At Esteb and Co, our experienced team can guide you through this complex process, leveraging our extensive lender panel to find the most suitable solution for your needs. Whether you're seeking to add someone for financial support or other reasons, ensuring that you make an informed decision is paramount.