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How to Remove a Co-applicant’s Name from Your Home Loan?

  • Highlights

  • Seek a novation from your lender

  • Substantiate why you want to remove your co-borrower

  • Prove your financial ability to be the sole applicant

  • Seek refinancing on the balance amount

You may have taken a home loan along with a co-applicant for various reasons such as to increase your home loan amount or to share the repayment burden. However, a few years down the line, you may find it more practical to remove the name of your co-applicant from your ownership deed and home loan agreement. This could be due to the death of the co-applicant, or if the co-applicant has become insolvent. Alternatively, you may need to do this if your co-applicant is your spouse and you have separated or filed for divorce. In order to remove a co-applicant from your home loan, follow these simple steps.

Step 1: Contact your lender and request a novation

When you seek to erase the name of your co-applicant from your home loan, you must contact your lender and ask for novation. This is a declaration that shifts the responsibility of repayment of the home loan from two borrowers to one. However, this all lenders do not permit this and such a transfer would depend on your lender’s terms.

Step 2: Provide your lender proof to show why you want to remove the co-applicant’s name

Regardless of the reason, it is important to provide your lender with the relevant documents that show why you want to eliminate the co-borrower from the home loan. For example, if your co-borrower has a poor credit score, submit a copy of his/her credit report.

Step 3: Furnish proof of your individual income to be the sole borrower

When you are planning to remove your co-borrower from the home loan, it is also important to prove your ability to repay it without the co-borrower’s financial contribution. To convince your lender, you may have to prove sufficient income by submitting your salary slips and providing a copy of your bank statements. If you want to get another co-borrower on board, you may have to nominate a guarantor for the interim, until you are able to decide on a suitable candidate.

Six Things to Remember Before Taking a Home Loan

Step 4: Refinance the balance amount of the home loan

In cases where the above steps aren’t feasible, a home loan balance transfer is your next best option. Switching from one lender to another lender can help you enjoy several benefits and take on the home loan without a guarantor or co-borrower.

Get a Home Loan Balance Transfer from Bajaj Finserv and enjoy a low rate of interest along with other value-added features such as a top-up loan. To calculate the affordability of your home loan, use a home loan EMI calculator and see if qualify for it by making use of a home loan eligibility calculator.

Following these steps will help you eliminate a co-borrower and make your home loan solely your responsibility.

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