How many account holders can I hire a home loan with?

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To better understand the issue of mortgage credit holders, we will explain in this article.  

Being the title holder of a mortgage: What does it imply?  

When hiring a home loan, you are titled as the loan holder. In other words, being the holder of this credit implies being responsible for reimbursing the debt of financing a property.

As the holder, it appears in the credit contract signed before a notary and registered at the Land Registry Office. And becomes the mortgagee, in the bank's view, assuming the obligation to settle the credit amount granted by the entity.

This value includes, of course, the interest and other charges associated with the financing. Therefore, it is the responsibility of the holder or several holders to make the payment, within the repayment period defined, of the monthly installments of the credit (under conditions established in the contract signed in the deed).

You should also know that it is possible to be the holder of a home loan without being the owner of the respective property. In most cases, it is common for the holder to be the owner, but it may not be.

This means you can hold the debt and be responsible for repaying the loan without being the owner, without any rights to the mortgaged property.

How many people can be holders of a mortgage loan?   

According to the law, there is no limit to the number of holders in a mortgage. The financing can be contracted by individuals or entities, jointly. However, the requirements to be met to be a holder apply to everyone, so if you want to contract a mortgage with other people, make sure that everyone meets the necessary requirements.

The more people apply for credit, the easier it will be granted. This is because the more income considered for the effort rate, the lower it will be. And the lower the effort rate, the more likely the credit will be approved.

The ideal effort rate should not exceed 35% (income compared to credit obligations), so if there are more account holders, there is less risk of defaulting on payments. Whether equitable or not, there are more people sharing the total debt value.

This is because, regardless of your position in the loan title (1st, 2nd, 3rd, or other proponent), the responsibility for meeting the payment of installments is identical for the total outstanding financing. So, know that you can always be held responsible for full compliance, jointly with the other participants.

But the conditions offered by banks in a mortgage with multiple holders can be more favorable, not needing (probably) a guarantor. Normally, the mortgage is contracted by two people as a couple, and it is possible to observe better conditions in this case than in the case of an individual contracting the same credit.

Can I hire a home loan with a friend?

Yes, mortgage credit is usually contracted with spouses or family members, but it can also be contracted with a friend.

Credit conditions may differ. When contracting credit as a couple or with a family member, the property is considered as own and permanent. But when contracting credit with a friend, it becomes considered a second residence.

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