What unmarried couples should know before buying a home

It is a growing trend that doesn’t seem to be a trend anymore — more and more unmarried couples are buying real estate together. A recent study found that one in four millennial unmarried couples had purchased a home together.

So with that in mind, couples should arm themselves with as much information as possible before taking the homeownership plunge.

• Consider how costs will be split: a major thing to consider, especially if you don’t have a joint bank account, is how your bills will be paid. Mortgage payments, insurance, cable, taxes, etc.
• Know each other’s credit: your credit score can be personal, but if you are planning to go in on a loan together, you better be confident about each other’s credit.
• Who is holding the title? One person can hold the title, but this essentially means you are not purchasing the home together.

Two (or more) people can take title to a house as tenants in common. The percentages of ownership don’t have to be equal. Upon the death of one such tenant, that person’s share passes to their heirs, whoever they might be. [Huffington Post]

• Be prepared for a split: as much as you don’t want to think about the end of your relationship, you definitely need to have a plan in place for what you’ll do if things really don’t work out. Just because your relationship ends, doesn’t mean your mortgage payments do.

The best advice I can give you if you’re in this position thinking about buying real estate is to consult with a professional, like a mortgage broker. There are a lot of things to consider, financially and legally, that you will want to give serious thought to.

Please contact me if you have any questions about homeownership!

Tags : calgary couple, calgary homes, calgary housing, calgary mortgage, calgary mortgage broker, calgary real estate