Co-buying a home: Is a joint mortgage right for you?
 "Co-buying a home: Is a joint mortgage right for you?")
In today’s competitive property market, more first-home buyers are teaming up with friends or family to purchase property. Recent NAB research shows joint mortgages have surged by over 33% in just one year, with the biggest increases in Victoria, South Australia, and NSW.
If you’re considering co-buying, FinancePath can help you assess whether this option suits your personal and financial circumstances and guide you through the process with expert advice.
Pros of co-buying a home
1) Get into the market sooner: Pooling savings and borrowing power can help you buy faster, especially in high-demand areas.
2) Buy in better locations: A joint mortgage can stretch your budget, allowing you to purchase in more desirable suburbs.
3) Share the financial load: From the deposit to repayments, bills, and maintenance — sharing costs makes ownership more manageable.
4) Build equity together: Co-buying can be a stepping stone to eventually owning your own place outright.
Cons of co-buying a home
1) Shared responsibility: Both parties are legally responsible for the mortgage. If one can’t pay, the other must cover it.
2) Different life plans: What if one person wants to sell, move overseas, or start a family? You’ll need a clear plan.
3) Legal and financial complexity: Decide on ownership structure (joint tenants or tenants in common) and seek legal advice.
4) Exit strategy: Selling or buying out later can be tricky — a written agreement is essential from the start.
Tips for making co-buying work
- Choose the right partner: Trust and financial compatibility are key.
- Get legal advice early: A solicitor can draft a co-ownership agreement to avoid disputes.
- Talk to a mortgage adviser: They’ll guide you through lenders and options.
- Plan for the future: Discuss scenarios like job loss or one party wanting out.
Real story: How co-buying kickstarted an investment journey Chris, a long-term FinancePath client of over 15 years, first approached us at age 28. At the time, Chris had a good job but only $10,000 in savings. Renting in inner-city Melbourne and travelling overseas meant saving for a deposit felt impossible, especially 15 years ago when government support for first-home buyers was limited. “I realised that I probably needed to start to plan for the future.” After meeting with FinancePath, new options came to light. The biggest challenge was raising enough for a deposit. Chris approached a friend in a similar financial position and suggested co-buying an investment property. Together, they identified a three-bedroom, two-bathroom apartment in inner-city Melbourne. To make it happen, Chris borrowed $5,000 each from his mum and sister, promising to repay with interest. Before proceeding, they agreed on a clear, written plan:
“Having a strong agreement in writing made it very, very clear to both of us before we proceeded. It kept the experience relatively stress-free.” Seven years later, both had moved on, started families, and decided to sell. The property had performed well, delivering over $100,000 net return after capital gains tax. This windfall became the foundation for their owner-occupied homes. “I don’t think I would ever have been able to save $100,000 independently. Co-buying gave me discipline and a purpose for saving as I focused on reducing the mortgage debt.” |
Key takeaways
- Clear agreements reduce stress: Written terms upfront made the process smooth and avoided disputes.
- Co-buying accelerates wealth creation: Chris leveraged shared resources to enter the market sooner.
- Financial discipline matters: Having a shared goal encouraged consistent savings and debt reduction.
Co-buying can be a smart way to break into the property market, especially for first-home buyers facing rising prices and tough lending conditions. With the right planning, advice, and communication, it can be a powerful strategy to achieve your home ownership goals.
FinancePath is here to help you navigate your options, understand the risks and benefits, and find the right path to home ownership, whether you’re buying solo or with someone else.
 "Mark Attard")
Author:Mark Attard| Tags:AustraliaCo-ownershiphome buyingco-buyingjoint mortgage |
