Tuesday, 14 September 2021
By Leahs Mortgages
Leah Zlatkin quoted in the Financial Post: ‘Canadians Consider Splitting A Mortgage With Friends. But it’s Complicated’
Before signing that mortgage agreement with a group of buddies, there’s a few things you should take into consideration.
“There’s quite a bit of a legal back-end that you need to take care of…” Leah Zlatkin, LowestRates.ca expert and mortgage broker, told the Financial Post. “You’d probably want to have a contract with a lawyer indicating who owns what percentage of the home, as well as who’s going to contribute and in what way. You’d also want to have a contingency plan.”
The contingency plan can serve two purposes: give the group of borrowers a back-up plan if there’s a life event that impacts their ability to pay for the mortgage (such as job loss or one person in the group leaving), as well as giving the lender more confidence and certainty in working with a group of individuals.
