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Co-purchasing a property

Plan ahead

Buying a home is one of the biggest financial commitments you’ll ever make, so it’s important to choose your property purchasing partner wisely. 

Consider someone who honours their financial commitments and understands that buying a home comes with many ongoing costs.

Co-purchasing should be a genuine arrangement where both parties benefit and share responsibility, rather than a way to help someone qualify for a loan. Keep in mind that lenders may have specific requirements around who can be considered a co-borrower.

To make sure you’re both in a position to manage your money accordingly, use our handy savings goal calculator to help you budget and save for your deposit.

Set clear expectations

It’s easy to get caught up in the excitement of buying a property with a friend or family member. But it’s important to think ahead and make sure everyone’s expectations are clear from the start.

Taking the time to understand each person’s responsibilities, contributions and what happens if circumstances change can help avoid issues down the track.

Before entering into any agreement, it’s worth considering independent legal advice to help you understand your options and obligations.

Choose the right home loan

It’s possible that you and your property partner bank at different financial institutions, and that’s okay. But when it comes to getting a home loan, you’ll have to agree on one provider.

To make sure you choose the right home loan for your needs, carefully consider your options and compare home loans.

Compare Home Loans

If you want to know the long-term impacts of different home loans with different mortgage interest rates, our home loan comparison calculator can help with a few clicks.

Cover yourselves

Once you and your property partner have agreed to buy together, you should review your personal insurance coverage.

Getting the right Home & Contents Insurance to cover your new home is a good place to start.

Title arrangements

Before finalising your purchase, it’s important to understand how ownership of the property can be structured.

Different title arrangements can affect what happens if circumstances change, so it’s worth taking the time to understand how each option works and what it could mean for you and your co-owner.

Joint tenants

Under this structure, ownership is typically shared equally. If one owner passes away, their share is usually transferred to the remaining owner, regardless of any will.

Tenants in common

With this arrangement, each owner holds a defined share in the property. If one owner passes away, their share is generally passed on according to their will.

As every situation is different, you may wish to seek independent legal advice to understand which option is most suitable for your circumstances.

Terms, conditions, fees, charges and credit criteria apply. This article is intended to provide general information of an educational nature only. Information in this article is current as at the date of publication.

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