Even though gay marriage is getting more common and discrimination less tolerated, it’s still hard for gay couples to become homeowners. Many of us fear rejection and discrimination while not being aware of our rights. So if you and your partner are thinking of buying a house together, here are a few things that will make the process easier and safer for both parties:
You can be joint owners
Buying a house (or designing a property together) is a wonderful act of love and trust between two people, but it’s also a legal and financial transaction. When you and your partner decide to buy a house, you can claim it as a “tenancy by the entirety.” This means that you and your partner legally own the house together as a married couple and a single entity in the eyes of the law. Thanks to legalized gay marriages, this mentioned classification is now available to gay and lesbian couples, while it was previously only reserved for marriages between men and women. Depending on where you live, you as an LGBTQ+ couple, can also enjoy various benefits of this arrangement.
When you’re tenants by the entirety, you can enjoy benefits like protection from creditors who want to seize or sell your house to pay off debts in your name. This claim also ensures your spouse will get to own and use the property after your death (“right of survivorship”).
Decide who owns what
If you and your gay partner are not married, you can still own a house together and own it under a “tenancy by common” arrangement. You and your partner can hold equal stakes in the property (50-50) or spell out how much each party owns. Let’s say you’ve been together for a long time but don’t want to get married. You can decide that one party owns one half of the property and the other owns the rest. In case you break up, one party can sell their interest and the other can keep it. However, in case of death, your partner is not automatically your heir.
Prepare for the purchase
Buying a home is an XL expense, so make sure to prepare for it properly. Work mindfully towards improving your credit score in order to nib those lower interest rates. Over the life of your loan, you can save thousands of dollars if you raise your credit score from 680 to 700. Also, start saving money for the down payment. If you’re ready to pay for mortgage insurance, you can get quite low down payments. Saving money also includes paying off your loans. If you’re already in debt, lenders might not be willing to put you in additional debt, so start making progress on other things you owe.
Get legal ownership in writing
Even when you’re a traditional monogamous couple, homeownership can be quite tricky. For gay people, this can get even trickier. To avoid any unwanted property ownership risks if you live in Australia, make sure to invest in title insurance in Australia and keep your right to occupy your land. This action allows you to dodge more than a dozen property ownership risks, skip excess in the event of a claim and even avoid recurring fees. Also, make sure to consult with your real estate agent and find an advisor who will draw up a contract that states who owns and owes what, especially if your marriage is not traditional.
Know your rights
It’s good to know that in many places that allow gay marriage, federal housing laws prohibit discrimination. In places like the USA, it’s illegal for sellers, agents and home builders to discriminate based on race, color, nationality, sex, religion, familial status and disability. No landlord or housing provider can say no to an LGBTQ+ couple just because of their gender identities, sexual preference and lifestyle preference. If you and your partner have stable credit, a lender under the Fair Housing Act can’t reject your application just because you’re gay.
If you believe you have been discriminated against during your house-buying process, contact the Office of Fair Housing and Equal Opportunity (or your country’s equivalent) and file a housing discrimination complaint. Or you can also contact your local human rights agency and determine whether there are grounds for a lawsuit.
Study the laws and start saving and improving your credit rating, and homeownership can be within a hand’s reach for you and your LGBTQ+ partner.
