People can apply for a mortgage either individually or jointly with one or more other people. Co-applicants are defined as people who apply for a mortgage together with the main applicant. Banks set a maximum number of applicants according to their own methodology, usually limited to four. According to internal statistics from hyponamiru.cz, in 54 percent of cases two to three people apply for a mortgage.
The co-applicant must also meet the bank’s conditions
When processing a mortgage, the bank views the co-applicant in the same way as the main applicant. The co-applicant must therefore meet the same conditions as the applicant. The basic condition is that the co-applicant must be of legal age and have legal capacity. He must also have a regular and verifiable source of income and must not have a social security or health insurance debt or be in foreclosure. When assessing an application for a mortgage, the bank also looks at the amount of regular monthly expenses (e.g. insurance, maintenance) and the amount of regular repayments on existing loans and credits.
Why is it advantageous to apply for a mortgage for two?
A relatively common obstacle to obtaining the required mortgage amount is insufficient income. If one applicant is unable to obtain a mortgage loan, it is worth inviting another co-applicant. The incomes of both applicants are added together and the bank can easily approve a higher loan amount. Mortgages with multiple applicants are safer for banks. For example, if one income is lost during the course of the mortgage, there is still at least a second income from which the regular monthly repayments can be made.