FAQs – Can I take over my parents mortgage?

Can I take over a mortgage from my parents?

Yes, you can take over a mortgage from your parents if a mortgage lender approved your application. There are cases where the current lender of the mortgage rejects such applications because of the affordability standpoint. If you are facing such issues, you can always contact a mortgage broker who can help you with your loan application.

Can I take over to my parents loan with a bad credit score?

It is possible but the process won’t be straightforward because of your adverse credit history. There are some bad credit mortgage providers who can help you with you application. It is always better to do a credit check of your current credit history before starting your application.

What happens when both my parents pass away?

After your parent dies, someone else will be responsible for distributing your parent’s assets in accordance with their wishes. Your parent’s estate must pay off the mortgage before you can move into the house. If you want to stay there after your parent dies, you should ask the bank if you can become a co-owner. If you do decide to become a co-owner, you will need to provide proof of death. The benefit is that there is usually no CGT payable when the property transfers. However, it’s not always that simple. In some cases, you may be required to pay a fee to assume the mortgage. You may also need to go through a probate court. This could cause huge family disputes.

You can read about remortgaging  on inherited properties on our blog.