Any couple united by the bonds of marriage can carry out a repurchase of credit. For spouses, the operation is conditioned and implemented according to several parameters, which the bank will not fail to control. How is a loan buy-back for a married couple structured? The answer here!
The repurchase of credit while being married, different from that of another couple?
No. A repurchase of credit for married couple is strictly identical to that of another couple or borrower. Whatever the status or profile of the borrower (s), the repurchase of credit, also called grouping of credits or debt restructuring, is based on the same principle: after having bought back the debts of the couple (or the ‘single borrower’) with the various credit organizations, the bank brings them together to give rise to only one single loan. There is therefore only one rate applied. Most often, this single loan is subject to an extension of the repayment period.
Credit repurchase for married couples: why opt for this solution?
By repurchasing a credit, the spouses logically reduce the amount of their monthly payments. This financing solution makes it possible to recover a certain financial serenity, or even to materialize a new project (purchase of a new car, household appliances, real estate …) insofar as the debt ratio is reduced . To do this, a new loan can possibly be combined with the grouping of credits.
Debt restructuring is designated differently depending on the nature of the loans purchased by the bank. We will talk about buying back consumer credit if the transaction concerns only consumer loans (personal loan, revolving credit, etc.) and buying back mortgage if it concerns both home loan and consumer loan. We also distinguish the repurchase of mortgage credit, which applies if the property is brought as collateral to the bank. This obviously implies that the borrower owns it.
In all cases, the use of online simulation tools and comparators is highly recommended: it is an unstoppable solution to find the best rate!
Credit pooling between spouses: it’s all about the regime!
In the absence of a marriage contract, the spouses are subject by default to the regime of the community reduced to acquests. If they make a marriage contract, the couple can, among other things, choose the separation of property regime. For the repurchase of credit from the newlyweds, the bank will distinguish each of these situations.
The community regime reduced to acquests
Under the regime of the community reduced to acquests, if the spouses individually contract debts during their marriage, they will be jointly liable until their repayment (unless the borrower realizes excessive expenses compared to the lifestyle of the couple, for example). In this case, all the loans can be bought back without distinction by the bank (consumer loan, real estate loan, revolving credit…) without prior agreement of one or the other borrower or co-borrower (if a credit had been subscribed to two).
The separation of property regime
Things are a little different in the case of a separation of property marriage. Here, loans taken out for personal use are the responsibility of the borrower. In no case will the bank be able to demand payment of the debts to the spouse. The spouse is therefore free to accept or refuse that these debts be included in the grouping of credits. On the other hand, the loans to which the couple subscribed jointly will automatically enter into the loan repurchase.
To sum up, a credit buy-back for married couples dependent on the separation of property regime can be made:
- and / or jointly.
Depending on the credits concerned, the borrower will have to focus on effectively separating his assets and resources (real estate purchase in joint possession, lease with one name, separate bank accounts, etc.). To ensure this, the bank is entitled to request a copy of the spouse’s bank accounts.
Credit repurchase: a solution to limit the financial consequences of a divorce
Ending a marriage often involves additional expenses for each ex-spouse. However, when a couple divorces by having several loans in progress, it is sometimes difficult to make an additional personal loan to deal with it, or even a mortgage for the purpose of making a cash buyout. Again, grouping loans is a good solution. By making this choice, the ex-spouses will each increase their repayment capacity on their own. They will therefore be able to better balance their personal budget and the bank will more easily agree to a new loan. Again, the simulation tools and comparators will be of great help to the borrower!
Consumer loans to redeem? A home loan in addition to a personal loan? For your credit repurchase and if you are married, take advantage of an attractive fixed rate, and even unbeatable up to $ 3,000. See you soon for a free simulation!