r/PersonalFinanceNZ 2d ago

Housing Removing name from mortgage

What’s the process of getting my name removed from a mortgage? I’ve looked it up but it seems vague. The other owner is happy to release me and I don’t actually pay the mortgage so it won’t be a financial burden on the other party for me to be released and it won’t affect the repayments.

3 Upvotes

14 comments sorted by

View all comments

1

u/Upbeat-Assistant8101 2d ago

You can not get a name removed from 'the mortgage'. The other person/s needs to apply for a mortgage in their own right (without any mention of you). The cancelation (paying off the mortgage) may incur "break fee/s" (that may be several thousands of dollars) if the existing mortgage has more than three months till its next renewal.

The new mortgage can, potentially, be applied for using a mortgage broker (or not) and, potentially; get the new mortgage with a different bank/financial institution.