How to Buy Out Your Partner from the Mortgage in New Zealand

When Love Ends But the Mortgage Doesn't

So you're separating, but one of you wants to keep the house. Welcome to the mortgage buyout - one of the most common (and complicated) parts of any breakup involving property.

The good news? It's totally doable in New Zealand. The bad news? There are about a dozen ways to mess it up if you don't know what you're doing.

What Actually Is a Mortgage Buyout?

Simple version: One partner buys out the other's share of the house equity. If your house is worth $800,000 and you owe $500,000 on the mortgage, there's $300,000 in equity. In a buyout, one person pays the other $150,000 (half the equity) and takes over the full mortgage.

Real version: It's never that simple.

The Steps That Actually Matter

1. Get a Proper Valuation

Don't guess what your house is worth. Get a registered valuation, not just a real estate agent's estimate. This number becomes the foundation for everything else.

2. Calculate the Real Equity

House value minus mortgage balance minus selling costs (even though you're not selling, you need to account for what it would cost). This gives you the actual equity to split.

3. Sort Out the Mortgage

The bank needs to agree to remove one person from the mortgage and confirm the remaining person can handle the payments alone. This isn't automatic - you'll need to requalify.

4. Handle the Legal Transfer

The property title needs to be transferred to one person. This requires legal work and comes with costs.

The SureThing Approach to Buyout Agreements

While the mortgage and legal transfer need professional handling, the buyout agreement itself can be straightforward.

What SureThing Can Handle:
• Buyout payment schedules
• Responsibility for ongoing costs during the process
• Deadlines for completing each step
• What happens if the buyout falls through

What Needs Professional Help:
• Mortgage refinancing
• Property title transfers
• Complex equity calculations
• Tax implications

The Hidden Costs Nobody Warns You About

Buyouts aren't just about the equity payment. You're also looking at:
• Legal fees for title transfer
• Bank fees for mortgage changes
• Valuation costs
• Potential tax implications

Budget for these upfront so there are no nasty surprises.

When Buyouts Go Wrong

The biggest mistakes we see:
• Not getting proper valuations
• Assuming the bank will automatically approve the mortgage change
• Forgetting about ongoing costs during the process
• Not having clear deadlines for each step

Making It Work

A successful buyout needs clear agreements about timing, responsibilities, and what happens if things don't go to plan. Start with a solid buyout agreement that covers all the basics, then get professional help for the technical stuff.

Ready to structure your buyout agreement? Start with SureThing to create clear terms for the buyout process, then work with mortgage brokers and lawyers for the technical implementation.

Because keeping the house shouldn't mean losing your sanity.