Joint bond: everything you need to know

What is a joint bond when buying a house?

You may improve your chances of having your application for a bond accepted and increase your chances of entering the property market with a partner by acquiring a bond in joint ownership with them. This will increase the likelihood that you will be able to enter the market together. The banks are delighted to have joint bond debtors since this minimizes the risk that they will be scammed out of the bond payments. The buyer of a joint bond obtains a guarantee that the principal and interest will be paid by at least two people when the bond is issued. Because of this, in many instances, the tenants will be able to move into a home that is better than the one that they would have been able to afford on an individual basis if they had been paying a bond on their own. This is because the total amount of the bond will be lower.

person with keys for real estate, joint bond
Photo by Oleksandr Pidvalnyi

How does liability work on a joint bond?

By signing a joint bond agreement, you and your investment partner(s) are jointly accountable for the repayments, taxes, and any other legal and administrative expenses involved with the purchase or sale of the property. This applies whether the property is being purchased or sold.

How does a joint bond affect my credit?

If payments are missed for whatever reason, both partners’ credit histories will be negatively impacted in the same proportion.

Can I sell my share of a joint bond?

Yes, At some point in time, one of the partners or joint bondholders will have the intention of selling their portion of the property. In many partnership agreements, there is a specification that this will be done after a certain amount of years.

Can we apply for a joint bond if we’re not married?

You are at liberty to file an application for a bond with anybody you like, whether it is a friend, a partner, a member of your family, or any mix of the three, as long as you do so together. You should only make sure that you protect everyone’s interests by having the parties in question draw up an official agreement so that you can all adhere to its provisions. This will ensure that everyone’s interests are protected.

What happens to a joint bond when one person dies?

In the event that one of the parties on the mortgage passes away, the surviving person will still be liable for making payments on the loan. Another concern is who will really own the property. Depending on the manner in which the title is acquired, the survivor may have complete ownership of the property, or some of the ownership may be passed on to the relatives of the deceased person. Before you acquire something with another person, you should get legal advice to make sure you fully understand all of your available choices. 

What are the disadvantages of a joint bond?

  • Those engaging in such arrangements should be aware that joint bondholders are required by law to take responsibility for the entire monthly bond payments. If one of their partners fails to make his monthly payments, the others may and will be held liable for paying the amount owed in addition to the amount they must pay.
  • If you are not married, you will have to work with another person until the mortgage is paid off in order to fully own the house.
  • In the event that there is a violation of the contract, the credit histories of both partners will be badly affected.
  • In the event that one of the partners wishes to withdraw from the bond agreement, a new bond application will need to be filed, and a comprehensive credit assessment will need to be performed on the application in order to ensure that it is affordable.
  • In addition, the house loan facility will be closed, which means that you will be required to pay bond registration costs in order to use the new home loan facility.


(2017, June 27). Understanding Joint Bond Ownership: Understanding Joint Bond Ownership. Retrieved October 31, 2022, from

Investopedia: Joint Bond Definition. (2022, September 11). Retrieved October 31, 2022, from

ooba: Can we apply for a joint bond if we’re not married? (n.d.). Retrieved October 31, 2022, from

Joint Mortgage: How to Apply & Things to Consider | Chase: Joint Mortgage: How to Apply & Things to Consider | Chase. (n.d.). Retrieved October 31, 2022, from

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