Questions & Answers
Joint mortgage
My wife and I are purchasing a property in Dubai which we will own jointly as per our wish.
Our bank -- which provides the 75% financing -- requests that the loan should be in the name of myself and my wife jointly. Is it a regulatory requirement or could I go with a loan in my name only? (as monthly revenues comes from me and I would like to protect my wife)
Also, the bank wants us to have a joint bank account. Is it a regulatory requirement or can we continue to use our existing separate bank accounts, one for me, one for her (both with the same bank)?
Thanks.
Dear Sir,
It's a commercial decision. If the loan is taken in your name only then only you will be liable. While the collateral ie the property is in the name of both parties.
In the event something happens to you (God forbid) then the bank cannot force your wife to pay as the loan is in your name alone. And in this situation, if they try to attach the property (IF and WHEN for loan default) your wife will have the right to contest it saying her share cannot be attached and the bank will not be able to recover 75% value of the property (ie the loan amount).
I trust this will give you a clear understanding.
With best regards,
Mrs. Khan
