Ownership and bond names

January 2023

  |  
Dave Mc Naught

This interesting question popped up. How can I remove my name from a bank mortgage bond?

When you buy a property and get a bank loan (mortgage bond) to pay for it, both the property ownership registration (title deeds) and the bank loan (mortgage bond) need to be in the same names.

This means that if a couple jointly buy a property the mortgage loan will also be in both names. You can't thereafter get one person released from the mortgage loan unless the property ownership also changes to one person. The only way to do this is if the one person sells their share to the other person, or if one person is awarded the other person's share on a divorce.

In such circumstances, if one person is to become the sole owner of the property, the bank will consider releasing the other person from the bond. They will only do this if they are satisfied that the remaining person and sole owner of the property is able to afford to repay the mortgage bond by himself/herself. Otherwise they will refuse consent and the property and mortgage bond will need to stay in both names.

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