Buying a house with a partner can be a joy, especially if it’s your first property. But along with the excitement, applying for a joint home loan can come with a few challenges.

To get you prepared for your joint home buying journey, Suncorp Bank Lending Manager, Jesse Blume provides some pointers you should know before buying a home with your partner.   

Consider including both partners on a joint home loan application

Can one spouse apply for a mortgage? It’s a question Jesse hears often, and he believes it’s important to consider the potential pros and cons of buying a property alone or with your partner.

“When assessing a home loan application, lenders typically consider only the income earned by a borrower on the loan. So having joint borrowers with dual incomes often means that they can borrow a higher amount than one individual funding themselves.”

Working together from the start and feeling equally invested can also help galvanise your buying intentions and what you want to achieve.

“If it’s a home for all to love and enjoy, it’s a loan for all to consider and care about..”

Think about how a joint home loan affects both partners in the long run

You should ideally work out how you’d like to share the ownership of your home as early as possible. If co-owners are joint tenants, they have equal ownership and interest in the property.

The right of survivorship also applies for co-owners. That means if a co-owner dies, the property automatically passes to the surviving tenant. If they are tenants in common, each person owns a share of the property – such as a 30/70 split – that they manage separately.

A lender will be happy to talk to you about your home loan options, but you’ll have to go to a legal professional for specific advice.

“Clients sometimes have legal questions regarding co-owning a property, but I always recommend you speak to a lawyer or solicitor to clarify any legal questions.”

“Leave the legal stuff to the professionals – it’s always better when you know you’re getting the right info.” 

Taking your time when house hunting might save you money

Working together as co-owners also pays off when deciding what you need out of your property.

“The biggest costs are often stamp duty and transfer fees, so if you buy the wrong home, you’ll need to spend unnecessary money to get the right one. Set some non-negotiables and try to stick to them.”

And because the home buying process can be a long one, consider that feelings might change for one or both of you. This is why regular communication with your co-owner can make all the difference.

Need help with your joint home loan application?

If you’d like help with a joint home loan, whether you’re getting started or you’ve already found your dream home, our lending experts can answer questions and help every step of the way. All home loan consultations are 100% obligation-free.

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Published 25 August 2022