Hi all
I recently read a article about a brother and sister who purchased a apartment together in inner Melbourne. The article said that they each took out seperate loans for there respective share of the property. My query is, what happens if one of them defaults on their loan? Would the bank have insisted that they each quaranteed each other's loan ?
Thanks in advance
The Bank will not allow separate loans in that respect of a joint title as they will be jointly and severally liable for the entire debt.
They may each have a loan of half the total amount with the statements in their own individual name but would still be underlying responsible for the entire debt.
Richard Taylor | Australia's leading private lender
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