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Buying a home with someone else can be an exciting and rewarding experience. Before taking the plunge, it's important to think about the potential risks and responsibilities that come with sharing a property. 

With the proper preparation, buying a home with someone else can be a great way to save money and get ahead in the property market. Two or more people can join forces to purchase a house, with each person contributing a portion of the purchase price and ongoing costs. By sharing the financial burden, buyers can access a larger and more expensive property than they would have been able to afford on their own. 

When considering a joint home loan, there are several factors to consider. It's essential to understand the steps of the process and what factors you should take into account. Read this article to learn more.

Who You’re Applying With

Making the decision to buy a property with another person can be a big step, so it's important to make sure you're picking the right person or people. It's essential to ensure that the experience is positive both currently and in the future.

Do you want to submit an application with someone else, like your partner, your parents, your best friend, or your sibling? Identify who is involved in the purchase and determine if your short and long-term objectives are aligned. Consider if you are buying the property to occupy or to rent out as an investment.

If you are purchasing a property with a few people, you may have a higher return but may have to deal with more disagreements. If you decide to buy with more people, you may have to compromise on your potential return but will have a more affordable home loan.

Legal Implications 

Before entering into a joint home loan agreement, it is essential to do some research and make sure you are fully informed about the details. It is recommended to get legal advice to create a contract that can protect both parties in the event of an unforeseen circumstance. Having a legal document in place will ensure you both have clarity and peace of mind when taking a step towards home ownership.

The Ownership Structure

If you and a co-borrower are buying a house together, you will have a choice of two ownership structures–tenants in common or joint tenancy. Tenants in common is a type of property ownership where two or more people own a share in a property. 

Each person has the right to own a certain percentage of the property, typically based on the amount of money each person contributed to purchase the property. With Tenants in Common, each co-owner has the right to sell, lease, and transfer their share of the property however they wish, giving them more freedom and flexibility than other forms of ownership.

On the other hand, joint tenancy is a type of property ownership between two or more people where each person has an equal stake in the ownership of the property. If one of the owners dies, the remaining owners automatically obtain the rights to the entire property. No one owner has the right to sell or give away their share of the property; if this is desired, the remaining owners would need to take legal action to force a sale of the property.


Joint home loans are a great option for couples, families or even friends who plan to buy a house together. With these loans, two or more individuals can combine their incomes and credit scores to get a better rate and loan amount from the banks. It also helps reduce the loan repayment burden as the loan amount is divided among multiple people. However, it is essential to consider all the pros and cons before opting for joint home loans and to understand the loan agreement in detail before signing it.

For the best home loans in Sydney, turn to Wealthy You. We are an Australian mortgage company servicing Sydney for almost a decade, and because of this, we can offer you a variety of mortgage solutions to meet your specific financial needs. As an alternative lending specialist, we make refinancing your home simple. Contact us.