The joint mortgage credit (better known as spousal credit) is a financial product that can be contracted with the spouse or the couple (even if they live in free union) to acquire a house. At first glance the characteristics of the joint credit make it look like a very attractive financial alternative. However, it is necessary to make a detailed review to determine if this credit fits the needs and economic capacity of the couple.
Still don’t decide if spousal loans are the best option for you?
Know the main advantages and disadvantages of this type of financing:
Higher budget Adding the income of two people increases the budget, so the couple can access a better home. This is not only beneficial for the comfort of the couple. Acquiring a property with better conditions ensures greater surplus value.
Greater protection The processing of these credits usually includes life insurance that protects the couple. If an accident occurs and one of the two dies, this policy would automatically cover the debt. Unlike individual financing in which only the borrower is insured.
A conjugal loan offers greater protection.
Better conditions In general, spousal loans represent a lower risk for banks, which is why they usually offer better conditions. Depending on the accumulated amount and the credit history of the couple, a better interest rate, a lower monthly payment or more comfortable terms can be obtained.
Legal problems Having a shared responsibility can be a big problem when the couple decides to separate. If an agreement is not reached, the property can go into litigation, which means time and money.
Bad credit history You may have a bigger down payment between the two, but if one of you has a bad credit history, you run the risk of having your application rejected. Before starting the process, consult your financial statements in the credit bureau.
Greater commitment Term loans are commitments that last for years
When joint financing is requested, the obligation is higher because it is calculated taking into account the income of both people. If one of them became unemployed or simply decided to stop giving his contribution, the responsibility would fall on the other person. This is very important, since it is not the same to answer for an individual debt than for a shared one.
Talk with your partner and discuss together the pros and cons of conjugal credits. If you both have a permanent job, your finances are stable and you are in a committed relationship, this financing can be a great option for you.