You might be thinking of buying your first home, and maybe with your partner. But the main question is, can you really buy with your partner or some other relative if you want, or not? If yes, what rules do you need to follow, and how do you apply for this type of mortgage? How is it different from usual homeownership, and what are its special conditions?

How To Buy a Home Together

When buying a home with someone, the first decision is choosing how you will hold ownership. And there are two main options that is joint tenancy and tenants in common.

Joint tenancy means that both partners share equal ownership, which is usually 50/50. However, tenants in common means unequal ownership. You can share ownership in any way, like with 70/30, 80/20, or any other split.

Applying For A Home Loan With a Partner

Along with that, when you apply for a home loan with your partner, you have to ask these questions, such as

• Who will live in the property long-term?
• How much will each person contribute to the purchase and ongoing costs?
• How will responsibilities be shared if circumstances change, like illness, job loss, or other unexpected events, such as a breakup?

But when you make the choice, also understand that neither one is better. The right choice still depends on your relationship, finances, and long-term plans.

What Are the Benefits of Buying Together

If you apply for a home loan jointly, you can have many benefits, like

• Shared financial responsibility —Both you and your partner will contribute to the deposit and mortgage repayments. As a result, it will not put financial pressure on anyone, both can manage it together.
• Easier access to home loans – You can easily access home loans by combining incomes, which can improve your borrowing capacity**** while allowing you to aim for a better property.
• Shared decision-making – Both partners can have a say in important property decisions like property upgrades or refinancing.
• Deposit and LMI benefit – You can easily save for a 20% deposit and avoid paying LMI (Lender Mortgage Insurance) if you qualify for the FHBAS (First Home Buyer Assistance Scheme).
• Security and stability – Since you own together, it can provide you with emotional and financial support, especially when you are in the early years of homeownership.

What Are The Demerits of Buying Together

But as buying together has some benefits, so does it also has some demerits, such as

• Shared liability – Both partners will share the responsibility for the mortgage. So, if one fails to pay, the other must bear all the repayments.
• Impact on Borrowing Power – Although joint ownership can increase borrowing power, shared debts or a bad credit history from one partner can still reduce approval chances.
• Less Flexibility – Decisions about selling, refinancing, or renting out the property will require mutual acceptance from both owners, which can delay the overall actions.
• Breakup Complications – If the relationship ends due to any reason, it can divide ownership or repayments. As a result, it can be more stressful for you and may require you to refinance or undergo a legal settlement.
• Unequal Contributions – Disputes may arise if one partner feels they contribute more financially or in upkeep, but ownership shares remain the same.

Right of Survivorship and Legal Considerations

When you share a mortgage, it is not just about repayments. You also need to know what legal rules you need to follow because they can later affect your future.

Such as in a joint tenancy, both partners will hold equal rights. So, if any of you dies, the other can become the sole owner of the property. And this is the concept everyone calls the right of survivorship. It gives security but can also override instructions in a will, so it’s important to plan beforehand.

Meanwhile, if you are tenants in common, things will work differently. The deceased’s share will not transfer automatically. Instead, it will become part of their estate and be passed on according to their will.  Although it’s a good option because in the end you don’t have to take permission to sell or rent out your share, it has some cons too.

For example, de facto couples or even ex-partners holding onto a property as an investment may choose tenants in common. The benefit is that it will allow them to maintain independent control of their shares. One partner can sell their portion without forcing the other to sell the property.

But it can complicate things for the surviving partner after death. That’s because ownership will pass according to the will or estate and not automatically.

Deciding Each Partner’s Financial Share

Once you understand how you and your partner hold ownership, it’s essential to figure out how much each partner will contribute. You can usually find this out with your ownership share. And while deciding this, it’s important to consider the following costs, such as how they will be split.

• Mortgage repayments 
• Insurance premiums
• Council rates
• Property maintenance

Also consider other financial responsibilities, like

• Paying out stamp duty
• Legal and conveyance fees
• Loan application and valuable fees
• Refinancing costs
• Taxes, including capital gains if you sell

Meanwhile, contributions don’t always have to be equal. Some couples assign shares based on income, tax planning, or credit advantages. For example, the partner with higher income may take a smaller ownership share for tax efficiency compared to you. So, it will be good if you compare home loans, since it will help you know the comparison rate and overall outlook of long-term costs.

Planning Your Home Loan Application Together

Since you are applying for a home loan with your partner, it’s important to have a proper plan. That’s because lenders will review everything individually, including your credit history, income, debts, and borrowing capacity.

And while planning, you can follow the steps below-

1. Review Your Finances Together

Check your combined income, debts, and savings. Because knowing this will help you to understand how much each of you can contribute to the deposit and ongoing repayments.

2. Reduce Debts and Manage Credits

Lower your credit card limits, pay off all your small loans, and avoid taking a new loan. That’s because it’s the main thing lenders consider when approving a joint loan.

3. Organize Your Documents

Collect payslips, bank statements, ID, and any other proof of your income or assets. Because having everything ready will speed up the process and avoid any unwanted delays.

4. Get Pre-Approval

Pre-approval is very important since it gives you the real picture of how much you can actually borrow individually. Also, if you have this, lenders consider you a serious borrower and approve your joint loan faster. You can even start your property search with this without any worries.

5. Discuss Loan Types and Application Options

There is not a single home loan, there are many. Check which type of loan**** is best suited for you and your partner. Discuss fixed, variable, or split loans, since every type has its own features and requirements.

Additionally, while deciding, also consider asking whether the loan will be applied jointly or in one name based on your finances and credit profiles.

6. Build a Financial Buffer

Plan for unexpected events such as job loss, interest rate changes, or emergencies. It will be a buffer for a few months’ repayments, which will help you provide peace of mind.

It will act like a financial cushion, which will help you and your partner continue meeting their mortgage repayments without future worries.

7. Protect Your Investment

It’s good for you to consider a co-ownership agreement because, with it, you will have clarity on many things. Like, you will know about ownership shares, responsibilities, and what happens if circumstances change, including separation or buyouts.

8. Consider Income Protection and Mortgage Insurance

These can cover repayments temporarily if one partner cannot work due to illness or other emergencies. If you have these protections in place, it will add a layer of security for both of you.

This will also ensure that the mortgage continues to be repaid without disrupting your budget or savings. Meanwhile, you and your partner can handle difficult times while preventing financial strain from unexpected events.

9. Communicate Openly

Discuss financial habits, goals and future plans openly because this will eventually help keep everything transparent. It will further help both of you understand each other’s priorities and potential challenges.

Also, keep track of your finances regularly, align your homeownership strategy, and build a stronger financial partnership for the future.

Preparing for Life Changes or Break-Ups

There can be unexpected situations even in the strongest relationship. So, when you own a home together, it will be good if you and your partner plan for situations like separation, job changes, or financial stress. And here are some approaches which can be used for that-

• Continuing the mortgage together – If both partners are good enough and willing, you can keep the mortgage as it is and continue living in the house.
• Selling the property – If both partners want to move on, they can sell off the property and split the proceeds as per the ownership shares.
• Buying out your partner – One partner can buy the share of the other, either by savings or a new home loan, to gain full ownership.
• Converting the property into an investment – You can also convert the property into an investment. That’s because by renting it out, one can manage repayments until a long-term plan is decided.

Covering All Costs Beyond the Mortgage

There can be costs beyond the mortgage as well, which both partners need to manage. So, it will be effective enough to discuss this aspect, too. In normal words, there can be the following costs that can occur-

• Ongoing bills – Council rates, insurance premiums, utility bills, and regular maintenance can add up.
• Emergency Repairs – Roof leaks, plumbing issues, or electrical faults can also happen, so setting up a separate maintenance fund for them will be of great help.
• Deposit and Initial Costs – Fees like stamp duty, conveyancing, inspections and loan establishment charges can also add up, since they are essential to keep everything running smoothly.
• Savings Strategies – There are strategies that you can use to save better, like deposit bonds, family gift schemes, or co-investment arrangements.

Government Assistance for Joint Buyers

Along with working out contributions and costs, couples can also explore whether they qualify for available government grants and schemes or not. This will help make buying easier with lots of savings benefits. These schemes include-

• First Home Guarantee / Home Guarantee Scheme

This is a major help for homebuyers with small deposits. Like eligible single or joint buyers can buy with just as little as 5% and avoid paying**** LMI (Lender’s Mortgage Insurance). And the best part is that now, as of October 1, 2025, all the income caps have been removed, and property caps have been increased.  That means you can access more housing options with this.

• First Home Owner Grant (FHOG)

Under the First Home Owner Grant, you will receive a one-time grant from the government, depending on which state you are in. This can be another help for you, by which you can offset upfront costs like CGT (Capital Gains Tax) and stamp duty.

But even applying with joint ownership, you need to comply with its conditions, like both partners haven’t owned the property before. Also, the amount of the grant can vary depending on the state you are planning to buy like in New South Wales, it can be $10000.

• First Home Super Saver Scheme (FHSSS)

If you don’t want to use your savings, you can even use your superannuation fund to buy your first home under the First Home Super Saver Scheme. It allows couples as well to jointly use their superannuation for buying, but it has certain restrictions. Like, you can only your own super fund up $50000 individually.

However, it is the best option to help with your deposit while you voluntarily contribute funds to your superannuation. But you must make sure to consider its different rules as well, like contribution limits and eligibility rules.

• Shared Equity Scheme

If you’re finding it challenging to save for a substantial deposit, the Shared Equity Scheme can also offer a practical solution. That’s because in this, you and the government come in partnership, and the government contributes a portion of the property in exchange for some of the equity stake.

It’s an effective scheme since, by this, you can totally avoid paying LMI while saving for the deposit. However, there are some criteria too that you and your partner need to follow. For example, if you are applying individually, your income should be $100,000 or less, and if applying jointly, your income should be $160,000 or less.

Practical Tips for a Smooth Joint Mortgage

Signing mortgage papers is not the only step when buying a home together and managing the partnership over time. There is a lot to it which you and your partner must consider, like-

• Revisiting Your Agreement Regularly

There can be unexpected changes that can happen anytime in life, like changing jobs, having kids, or even moving cities. That’s why it’s important to schedule periodic check-ins to update responsibilities, repayment strategies, and long-term goals.

• Keep Communication Open

All the time, it’s important to keep open communication, since it will ensure both of you have better spending, savings and future plans ahead. It will further keep the decisions aligned with a lower chance of any misunderstanding.

• Seek Expert Guidance

When situations become complex, like tax considerations, refinancing, or investment strategies, don’t hesitate to consult a mortgage broker, financial adviser, or legal expert. That’s because a professional input can save time, money, and even unbearable mental stress in the later phases.

• Document Everything Clearly

Be it’s ownership shares, contribution splits, or responsibilities for ongoing costs, put everything in writing. That’s because, by doing this, you and your partner can avoid any confusion later and ensure that both of you know exactly where each one stands.

Final Words

If you are buying a home with your partner, then you must understand that it is more than just a shared financial commitment. It’s a partnership, both of you should have a mutual understanding to plan and make decisions together. Like every step, from deciding ownership shares to managing contributions and ongoing costs, is crucial to understand.  Be it is preparing for unexpected events, using available government schemes, and having protective measures. Everything in place will help you make your homebuying journey less stressful.

Alongside, make sure to have open communication and regular reviews to ensure that you both can stay aligned with your goals and responsibilities. That’s because with a thoughtful planning, transparency, and professional guidance when needed, couples can transform homeownership into a secure and empowering experience.

Frequently Asked Questions

Here are some more questions related to joint ownership, you might want to know about-

Q1. Can I add someone to my mortgage without refinancing in Australia?

No, because in Australia, adding someone to your mortgage usually requires refinancing, as lenders need to reassess the new applicant’s borrowing capacity.

Q2. Can two friends buy a house together in Australia?

Yes, friends can buy a house together in Australia, but it will mainly happen through a co-ownership arrangement. Alongside, you need to decide the type of ownership as well, like the joint tenancy or tenants in common that suits you best.

Q3. What happens to a jointly owned house when someone dies in Australia?

If your ownership is of joint tenancy, then the surviving owner will automatically inherit the other party’s share in this case. However, if it is tenants in common, then the transfer of the share will happen as per the will or intestacy rules.

Q4. Can my parents help me get a home loan?

Yes. Parents can act as guarantors under a guarantor home loan or gift a deposit. But banks can still expect evidence of genuine savings to show good money habits.

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