Buying your first home solo can be tough. But you don’t have to do it alone. Teaming up with someone you trust (like a sibling, partner or friend), could get you in the door faster. It’s called co-buying. And it’s a smart way to share the cost and boost your buying power.
Here’s how it usually works:
You apply for the home loan together*
Your combined income, savings, and debts are assessed by the lender, which could increase your borrowing capacity. That means you might be able to afford a home in a better location or with more of the features you want.
You share the upfront costs*
This includes the deposit, stamp duty, settlement costs, and any fees like building inspections or legal services. Splitting these can make the whole process more achievable.
You co-own the property*
You’ll both be listed on the title and mortgage. Most people go 50/50, but it can be any ownership split that works for you (e.g., 70/30 if one person contributes more). This should be agreed upon upfront and documented.
You both contribute to the repayments*
Just like the ownership split, the repayments can be divided equally or proportionally. You’ll need to be clear on who pays what and what happens if one person can’t keep up their share.
Smart Tips for Co-Buying Success:
Put it in writing*
Set up a co-ownership agreement with the help of a lawyer. It outlines who owns what, how costs are split, what happens if one of you wants to sell, and how you’ll handle unexpected issues. It protects you both and avoids awkward conversations later.
Be open about finances*
Before you commit, have honest conversations about income, savings, debt, job stability, and long-term plans. Trust is key, but clarity is everything.
Think long-term*
Do you both see this as a stepping stone or a forever home? Do you plan to live in it, rent it out, or sell it in a few years? Aligning on your goals makes the partnership smoother.
Not your path? No stress! There’s more than one way to be financially first-home ready.
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*This is not financial advice and is general information. We recommend seeking assistance from a qualified mortgage broker to help determine what’s the right option for your financial situation. Lenders terms and conditions apply. Please note this is a guide only, this information may be subject to change.
All Financial services provided by Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN: 65 079 545 378 Australian Credit Licence No. 385487