However, a few years later, you might want to remove the name of your co-applicant from your ownership deed and home loan agreement. This could be due to the co-applicant’s death or insolvency or if the co-applicant is your spouse and you have separated or filed for divorce.You may have taken a home loan along with a co-applicant to get a higher loan amount or to share the repayment burden.
There are a few simple ways in which you can remove your co-applicant’s name from the home loan documents:
1. Contact your lender and request a novation
Ask your lender for a novation to erase the name of your co-applicant from your home loan. A novation is a declaration that shifts the responsibility of repayment of the home loan from two borrowers to one. Not all lenders allow this, so whether you can do this or not depends on the lender’s terms.
2. Give the lender proof to show why you want to remove the co-applicant’s name
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 agreement. For example, if your co-borrower has a poor credit score, submit a copy of their credit report.
3. Furnish proof of your individual income demonstrate your sole repayment capacity
Prove your ability to repay the entire loan without the co-borrower’s financial contribution. To convince your lender, you may have to show sufficient income by submitting your salary slips and providing copies 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 decide on a suitable candidate.
4. Refinance the balance loan amount
When the above options aren’t feasible, a home loan balance transfer is your next best bet. Switching from one lender to another 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 interest rate and other features such as a top-up loan. Use a home loan EMI Calculator to calculate the affordability of your home loan, and see if you qualify for it by using a home loan eligibility calculator.
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