Should I continue repaying a mortgage if I am not on the title?

As long as you are named on the mortgage, you have the responsibility of repaying the mortgage. If you fail to do so, it can affect your credit rating and your ability to access other types of credit. Suppose you and your partner bought the property, and are no longer together - you’ll need to work out an agreement whereby the ownership of the property is decided. You could choose to buy out your ex, or they could buy you out. This would involve refinancing the mortgage to remove one person’s name. If you’re not named on the property title, however, you may not be able to take ownership. Be sure to change the property title details to ensure that the new owner is named on the title before attempting to refinance the mortgage.

While you and your partner are sorting out the property transfer, you should discuss your circumstances with the lender and adjust your repayment schedule if necessary. Being proactive and discussing the situation with your lender can help prevent you from missing repayments which can have negative consequences. However, both of you are still responsible for repaying the mortgage until the property transfer is finalised and the home loan refinance is finalised. If you face issues in reaching an agreement with your partner, seek legal advice to see what you can do. You may be able to get a court order stating that your partner alone is responsible for repaying the mortgage.

If you’ve paid off the mortgage in full, you can apply to the lender to discharge the mortgage and remove the encumbrance, or mortgage details, from the property’s title. As you’re named on the mortgage, you can apply for discharge; however, if you’re not on the title, you won’t have any ownership rights once the mortgage is discharged. You’ll probably need to get consent from your partner, or whoever’s name is on the title to have your name added. The best way to do this is to hire a conveyancer who can work with you through the process of changing the title. 

You can also choose not to discharge the mortgage, such as when you’ve accessed some of the equity in the property. In such a circumstance, the title remains with the lender, and you can continue managing the mortgage without needing to add your name to the title. However, you’ll need to discharge the mortgage if you sell the property, which may require listing your name on the title as an owner before the sale is finalised.