Sharing a mortgage can be enticing, however, it is easier said than done. Read to find out more.

In this article

• Why add your partner to your mortgage?

• The benefit of adding someone to the mortgage

• The downside of adding someone to your mortgage

• Refinancing to add a spouse to a mortgage

• What about my spouse's right to the property?

• Final words

Sharing a mortgage with someone can be a ray of hope for borrowers looking to share the cost of repayments. This can be particularly lucrative for married people who want to merge their finances, including their mortgage liability.

Can I add someone to my home loan without refinancing? The short answer to this is usually no, as lenders need to assess the income of the other applicant before they can be added to the mortgage. Unless the lenders re-assess the serviceability of the loan, they cannot hold another person liable for the mortgage debt.

In other words, including someone to your mortgage is easier said than done. Here's what you need to know about the implications of adding your spouse to your mortgage.

Why add your partner to your mortgage?

The key motivation behind adding your partner to your mortgage is to maximise your chances of borrowing a larger amount. It is because the spouse's income is also assessed as part of the loan application.

For instance, if you want to borrow more than your income alone would support, adding your spouse's income to the mortgage application can improve your chances of getting approved. Couples who want to upgrade their current home or buy a house in a pricier neighbourhood can benefit from a larger mortgage. In such cases, adding your partner's name to the mortgage is a preferred solution.

Adding your spouse to the mortgage application may also help you access a more competitive deal and potentially a lower interest rate than what you would pay if you took it out as a single person. Another reason you should consider adding your spouse to the application is that you may be able to get a repayment holiday feature or an interest-only facility on your loan. Such relaxation may be helpful if you want to take a loan but don't want to start repaying it immediately.

The benefit of adding someone to the mortgage

• The chief advantage of adding someone to your mortgage application is to improve your borrowing power. For example, if you find it challenging to qualify for home loans for bad credit on account of a lower credit score (Raise your game, 0-299), adding your spouse, who has a better credit history, can make it easier to borrow.

Not sure what your current score is? Sign up with ClearScore to check credit score anytime.

• If you do not have the minimum credit score for a home loan, but your spouse does, adding them to your loan application can be helpful.

• Adding someone to your mortgage also allows you to look around for a more competitive loan offer instead of settling for an inferior one.

The downside of adding someone to your mortgage

• On the flip side, if the person you add to your mortgage is not eligible to borrow a loan, there is a risk of your joint application being rejected.

• Therefore, if the spouse does not fulfil key eligibility factors such as income, expenses, and credit score, the lender may refuse to recognise them as a co-mortgagor and reject the application.

• Once someone becomes a co-borrower on a mortgage application, their ability to take out other loans reduces until the previous loan is fully repaid. Any loan defaults can also reduce their credit scores, further impacting their borrowing ability.

• If your spouse has pending judgments or unpaid debts, creditors can lodge a caveat or writ on the property title whose mortgage you share with your spouse.

• You may need to refinance to buy out your spouse after a divorce or a split if you intend to retain your interest in the house.

Refinancing to add a spouse to a mortgage

The best way to add a spouse to an existing mortgage is through refinancing it in both names. Refinancing the mortgage can be a long-drawn process needing you to furnish a significant amount of documents, including:

• Your spouse's credit report

• Proof of income of your spouse

• Proof of income of the current mortgagor

• Personal identification details of your spouse

• List of current and outstanding debts in your spouse's name

Even though you may think that opting for a refinance home loan to add your spouse to the home loan is a lot of paperwork, it is a good option, nevertheless. It can help you get a lower interest rate or better mortgage terms. It is also possible to get cashback deals to make refinancing more lucrative.

In any case, remember to consider the total cost of such a refinance before you decide, and only take on a mortgage you can comfortably afford to manage and repay. Also, take into account that you may need to alter the title deeds of your property to record the name of your spouse, as they may only be willing to be responsible for repaying the mortgage if they have a stake in the property.

Step-by-Step: How to Add Someone to Your Mortgage in Australia

Refinancing to add a partner or spouse to your mortgage involves several stages. Following a clear process can help you avoid delays, unexpected fees, and rejected applications.

• Check both applicants' credit scores and borrowing eligibility

• Before approaching any lender, both you and the person being added should review your credit reports. Use ClearScore to check credit score details for free, including any defaults, enquiries, or outstanding debts. Lenders will assess both applicants against their minimum credit score for a home loan requirements, so it pays to identify and address any issues early.

• Speak to your current lender about internal refinancing options

• Contact your existing lender first. Some banks offer a streamlined internal refinance (sometimes called a loan variation) that adds a co-borrower without requiring you to discharge and re-establish the mortgage. Internal refinances often carry lower fees and faster turnaround times than switching to a new lender entirely.

• Compare refinance offers from other lenders

• Even if your current lender offers an internal process, it is worth comparing interest rates and terms from competing lenders. A new lender may offer a lower interest rate, reduced fees, or cashback incentives that more than offset the cost of switching. Pay close attention to comparison interest rates, which include most fees and charges, rather than headline interest rates alone.

• Gather required documents and submit the joint application

• Both applicants will need to provide proof of identity, proof of income (payslips, tax returns, or business financials), a list of current debts and liabilities, and recent bank statements showing living expenses. Your lender will use this information to assess the joint serviceability of the loan. Submit the application together and respond promptly to any requests for additional information to keep the process moving.

• Update the property title deed with your state's land registry

• Once the new loan is approved and settled, you will need to transfer a share of the property title to the incoming borrower. This is handled by a solicitor or conveyancer who lodges the transfer with your state's land titles office. In most states, spousal and de facto partner transfers attract a stamp duty exemption, but confirm the specific rules and any required documentation with your legal adviser beforehand.

• Confirm the new loan structure and repayment terms

• After settlement, review the final loan contract to ensure the interest rate, loan term, repayment schedule, and any offset or redraw facilities match what was agreed. Set up automatic repayments from a joint or nominated account so both parties can track the mortgage. Keep copies of all signed documents in a secure location for future reference.

How Much Does It Cost to Add Someone to Your Mortgage?

It is worth weighing up the total cost of refinancing, but the actual figures can vary widely depending on your lender, loan size, and state. Below is a breakdown of the typical fees you may encounter when refinancing to add a co-borrower, along with key exemptions that could reduce your out-of-pocket expenses.

State-by-state stamp duty concessions for spousal transfers

Stamp duty is often the largest variable cost when adding a partner to your mortgage. Fortunately, most Australian states offer concessions or full exemptions for transfers between spouses or de facto partners:

• New South Wales (NSW) - No stamp duty on transfers between married or de facto partners where the property is the principal place of residence, provided you each hold equal shares (as joint tenants or tenants in common) after the transfer. De facto partners must have lived together for at least two years.

• Victoria (VIC) - Spousal transfers of a principal place of residence are exempt from stamp duty under the Duties Act 2000.

• Queensland (QLD) - Transferring an interest in the home you live in to your spouse or de facto partner by way of gift is exempt under section 151 of the Duties Act 2001, provided you will then hold it as joint tenants or tenants in common in equal shares. De facto partners must have been living together for at least two years.

• Western Australia (WA) - No duty is chargeable on a transfer of the family home between spouses or de facto partners of at least two years, provided the transferor is the sole owner and the couple will then hold it as joint tenants or tenants in common in equal shares (Duties Act 2008, section 97).

• South Australia (SA) - Full stamp duty exemption available for the transfer of a principal place of residence between spouses or domestic partners under Section 71CB of the Stamp Duties Act 1923. Transfers as part of a relationship breakdown may also qualify for separate relief.

Always confirm current concession rules with your state's revenue office, as thresholds and eligibility criteria are updated periodically.

Hidden costs to watch for

Beyond the headline fees, be aware of costs that are easy to overlook. Break fees on fixed-rate loans can run into the thousands, depending on the remaining fixed term and prevailing market interest rates. If your new combined loan pushes the loan-to-value ratio above 80%, you may need to pay lenders mortgage insurance a second time. Finally, some lenders charge ongoing annual package fees that differ between single and joint borrower products - factor these into your comparison.

Alternatives to Refinancing When Adding Someone to Your Mortgage

While refinancing is the most common route, it is not the only option worth exploring. Depending on your goals, one of the following alternatives may suit your situation - though each comes with its own limitations under Australian lending rules.

Adding someone to the title deed without changing the loan

It is possible to add your partner to the property title without altering the mortgage itself. This is done through a transfer of interest, handled by a solicitor or conveyancer and lodged with your state's land titles office. However, the original borrower remains solely liable for the loan repayments. Your lender must still consent to the title change, and some may refuse or charge an administrative fee. This approach gives your partner a legal ownership stake in the property but does not make them responsible for the debt - meaning it offers no improvement to your borrowing power or repayment capacity.

Loan assumption (and why most Australian lenders don't offer it)

A loan assumption allows a new borrower to take over the existing mortgage on its current terms, effectively stepping into the original borrower's shoes. In practice, almost no Australian lender offers a formal assumption process for residential home loans. Lenders are required under responsible lending obligations to assess each borrower's capacity to service the debt, which makes it functionally equivalent to a new application. If your lender does permit an assumption, expect a full credit and income assessment for the incoming borrower, along with legal and administrative fees. For most Australians, this path is theoretical rather than practical.

Using your spouse as a guarantor instead of a co-borrower

Rather than adding your partner directly to the mortgage, they could act as a guarantor. A guarantor agrees to cover the loan repayments if the primary borrower defaults but is not named on the mortgage as a co-borrower. This arrangement can help if the primary borrower's income alone does not satisfy the lender's serviceability requirements. Keep in mind that guarantor obligations carry significant risk - if repayments are missed, the guarantor's own assets and credit score are on the line. Guarantor arrangements are more commonly used by parents helping children enter the property market, but they can apply between spouses in certain circumstances.

When refinancing is genuinely the only path

If your goal is to have both names on the mortgage - sharing legal responsibility for repayments and gaining combined borrowing power - refinancing or a loan variation is typically required, though processes and eligibility vary between Australian lenders. This is especially true when you want to renegotiate loan terms, switch to a lower interest rate, or consolidate debts at the same time. Where the alternatives above fall short on lending obligations or practical availability, a full refinance ensures both parties are properly assessed and legally bound to the loan.

What about my spouse's right to the property?

If you or your spouse files for divorce and their name appears on the title deed of any property you own, the property may form part of the property settlement, depending on ownership, your circumstances and the relevant family law, regardless of whether their name appears on the mortgage. Independent family-law advice is worth obtaining before changing ownership.

Even if the name of your spouse doesn't appear on title deeds or they have not made any contributions towards the loan repayment instalments, they may still be able to stake a claim in the property. In other words, since your spouse and you share a property, they have a legal interest in it.

That's why you should think carefully before adding your spouse to your mortgage and altering the title deeds to include them as the property owner. Always seek appropriate legal advice before taking any decision.

Final words

Experts suggest that adding your spouse to your mortgage should only be undertaken after careful consideration. In fact, you should wait for a while before amending the title deeds and mortgage application -- in case the relationship doesn't work as expected, there is no impact on your interest in your existing assets.

Frequently Asked Questions

Can I add my de facto partner to my mortgage in Australia?

Yes, de facto partners are treated in much the same way as married spouses under Australian lending rules. Your lender will need to assess your partner's income, expenses, and credit history before approving them as a co-borrower. This typically requires refinancing the loan. On the property title side, most states offer stamp duty exemptions or concessions for de facto partner transfers, similar to those available for married couples. You will generally need to provide evidence of the de facto relationship, such as a shared lease, joint bank statements, or a statutory declaration.

Can I add a family member or friend to my mortgage?

You can add a family member - such as a parent or sibling - or even a friend to your mortgage, provided the lender approves them as a co-borrower through a refinance. The same eligibility criteria apply: the new borrower must demonstrate sufficient income, a satisfactory credit history, and an acceptable debt-to-income ratio. Keep in mind that adding a non-spouse to the property title will usually attract full stamp duty (spousal exemptions do not apply), which can significantly increase the cost. Both parties should also seek independent legal advice, as co-borrowing creates joint liability for the entire debt.

Can I add someone to my mortgage after settlement?

Adding someone after your loan has already settled requires refinancing the existing mortgage into joint names. You cannot simply call your lender and request an additional name on the loan. The lender must conduct a full reassessment, including a credit check and serviceability calculation for the new applicant. If you only want to give your partner a legal ownership interest without changing the loan, you can transfer a share of the property title - but the mortgage obligation will remain in your name alone.

Does adding someone to a mortgage affect my credit score?

Refinancing to add a co-borrower will trigger a hard enquiry on both applicants' credit reports, which may cause a small, temporary dip in your credit scores. Once the new joint loan is established, both borrowers share responsibility for repayments. Any missed or late payments will be recorded on both credit reports. Conversely, consistent on-time repayments can help both parties build or maintain a healthy credit score over time, ideally reaching the Looking bright band (700-799). You can monitor changes by checking your score regularly through ClearScore.

Do both borrowers need to be on the title to be on the mortgage?

Not necessarily, though most lenders strongly prefer - and many require - that all borrowers also appear on the property title. From the lender's perspective, having both names on the title provides additional security for the loan. In rare cases, a person may be on the mortgage but not on the title, or on the title but not on the mortgage (where only one partner is the borrower). If you are unsure which arrangement suits your situation, speak to your lender and a qualified solicitor before proceeding.