Buying a home with a partner is an increasingly common step for Australian couples looking to enter the property market sooner. While pooling resources can make homeownership more accessible, it also introduces financial and legal complexities, such as shared liability, exit strategies, and risk mitigation. This guide, written by an expert mortgage broker in Brisbane, covers practical tips, hidden costs, and protections you should consider before taking this big step together.
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Watch The Video: Buying A Home With A Partner
How Property Ownership Works When Buying A Home With A Partner
In the eyes of the law, de facto relationships and marriages carry similar weight when it comes to property ownership.
The Family Law Act 1975 defines a de facto relationship as one where two people, who are not legally married or related by family, live together on a genuine domestic basis.
So, the government technically declares a de facto relationship as a party living together for 2 years. However, banks will consider you to be in a de facto relationship if you’ve been living with your partner for at least 3 months or if you intend to live with your partner in the future.
This view has a lot of implications, not just if you’re buying a property together but if you’re buying on your own. If you are applying for a loan by yourself but living with your partner and state on the application that you are in a de facto relationship, the bank no longer sees you as a single person paying your own bills. They will say you are now looking after the living expenses of 2 adults, which will reduce your borrowing capacity.
If you’re considered de facto, your living expenses might increase from $1,900 a month to $3,000 a month, which is why your borrowing power comes down. Now, not all banks are the same in the way they view this. Some lenders will not increase your living expenses if your partner is working.
But, if you are buying with your partner, the bank will assess your joint income and savings, which will increase your borrowing power.
In the eyes of the law, de facto relationships and marriages carry similar weight when it comes to property ownership. So, in other words, buying a home with your partner is the same as buying a home with your husband or wife, at least as far as the legal system is concerned.
Preparing To Buy A Home With Your Partner
Buying a home with your partner is a huge financial decision.
To make sure that you’re ready to buy a home and that you’re making the right decision, there are a couple of things we recommend doing:
- Make sure you’re on the same page financially
- Be prepared for the responsibility of a home loan
- Have some uncomfortable conversations
Let’s take a look at each of these in more detail.
Make sure you're on the same page financially
Before you dive into the deep end of a joint home loan, we recommend making sure that you’re on the same page in terms of financial habits and responsibilities.
You may already be sharing financial commitments with your partner. If so, great! You should hopefully have an accurate picture of how they are with their money.
If not, here are some things you may want to consider sharing before buying a home:
- Rent or lease payments
- Utility bills such as electricity, water, and internet
- Groceries and household items
- Joint bank account for shared expenses
- Car payments or other loans
- Saving for the home deposit
Be prepared for the responsibility of a home loan
A home loan is a long-term commitment with significant financial implications.
Before you commit to buying a home, make sure that you’re ready for the responsibility.
Here are some things to consider:
- Being ready for a home loan is more than being able to afford the monthly repayments
- Are you prepared for potential interest rate rises in the future?
- Does buying a home fit in with the long-term goals for you and your partner?
Uncomfortable conversations: how will you handle things if the relationship ends?
When you’re in the throes of love and the excitement of buying a home together, it’s easy to overlook the possibility of a relationship breakdown.
However, it’s crucial to have these uncomfortable conversations early on.
Discussing what happens if the relationship ends can help prevent potential disputes and ensure a smoother process if you do decide to part ways.
When buying a home with a partner, it’s important to establish ground rules and have a clear agreement about property division in case of a breakup.
This should include details about how mortgage payments, maintenance costs, and other expenses will be divided, as well as what happens to the property if you separate.
Pros & Cons Of Buying With A Partner
The Upside — Why Buying Together Can Make Sense
Buying a home with your partner often opens financial doors you couldn’t access alone.
- You pool savings which equals a stronger deposit and better positioning for the loan. For many Australians, combining finances is the fastest route into the property market.
- You may qualify for a higher borrowing capacity, since lenders look at combined incomes. This can give you access to larger or better‑located properties.
- You can enter the market sooner. In a climate of rising home‑prices and long saving periods, co‑buying becomes an alternative route. A survey found nearly half of young Australians would consider buying with a friend or partner just to get in earlier.
- Shared responsibility: You split deposit, repayments, and ongoing costs (maintenance, rates, etc), which can ease the individual burden and support financial flexibility.
The Risks — What Could Go Wrong
While teaming up can boost buying power, it also comes with greater complexity and risk.
- Joint liability: Even if you contribute less, you may be legally liable for the full mortgage. If your partner fails to meet repayments, your credit and financial standing are at stake.
- Credit and income variations: If one partner has weak credit or no income, it could reduce your borrowing capacity or lead lenders to assess the combined household differently.
- Relationship changes: Break‑ups or changes in life plans can complicate ownership. Without the right structure, one person may be forced to sell or buy out the other, often under stress.
Missed expectations: You may disagree on location, property type, or timeline. These misalignments can affect both the property journey and the relationship.
Quick Snapshot: Pros vs Cons
Pros | Cons |
Shared deposit and resources | Joint liability for full loan |
Higher borrowing capacity | One person’s credit/income can reduce capacity |
Market entry sooner | Potential for conflict or break‑up complications |
Shared costs/responsibilities | Misaligned goals or lifestyle changes can derail plans |
What this Means for You
- Ensure both partners are financially transparent: know each other’s credit history, incomes, and financial habits.
- Choose an ownership structure (joint tenants vs tenants in common) and clearly document each partner’s contribution and rights.
- Agree on what happens if one partner wants out — include exit plans before you buy.
- Use combined strength wisely, not just for purchase power but for future flexibility and protection.
The Three Key Factors To Consider When Buying A Property With A Partner
Buying a property with a partner can be complicated, but really it comes down to four key factors:
- How much will each partner contribute to the deposit?
- How will the loan repayments be divided?
- What will be your exit strategy if things don’t turn out as you hope?
- What is the best ownership structure for you?
Let’s take a look at each of these in more detail.
How much will each partner contribute to the deposit?
You may want to contribute equally to the deposit, or agree to contribute a fair amount based on your earnings and financial situaion.
How will the loan repayments be divided?
As with the deposit, you should discuss how you will be sharing the cost of repayments. Will you share equally, or contribute a portion based on how much you earn
What is the best ownership structure?
The two most common ownership structures are joint tenants and tenants in common.
In a joint tenancy, both partners own the entire property together. If one partner passes away, the property automatically goes to the surviving partner, regardless of what’s stated in the deceased partner’s will. But the downside with joint tenancy is that you both own the property jointly and equally, meaning that if you do sell the property, it won’t matter if you put in more deposit than your partner; both of you own an equal share.
In a tenancy in common, each partner owns a specific share of the property, which can be equal or unequal. If one partner passes away, their share goes to their estate and is distributed according to their will.The only issue will come up when you want to inherit your partner’s share, as you will have to go through a transfer process.
But on the other hand, if you decide to split up and sell, you will get your share of the property under tenants in common. So if you own 90% and your partner 10%, then when you sell the house, you get 90% of the equity and your partner 10%. This is a better approach because then you don’t need to worry about creating other financial contracts.
Hidden Costs and Budget Considerations
Buying a home with your partner involves more than just a deposit. Many first-time buyers underestimate the extra costs that come with property ownership. Planning ahead helps prevent surprises and keeps your finances on track.
Common Additional Costs Beyond the Deposit
Even after saving for a deposit, you’ll need to budget for other upfront and ongoing expenses:
- Stamp duty: A state-based tax, often thousands of dollars, depending on your property value and location.
- Loan application fees: Banks may charge upfront fees to process your mortgage.
- Lender’s Mortgage Insurance (LMI): Usually required if you borrow more than 80% of the property’s value.
- Conveyancing and legal fees: Professionals ensure property contracts are correctly drafted and settlement runs smoothly.
- Building and pest inspections: Protect yourself from unexpected property defects or infestations.
- Ongoing maintenance and repairs: Budget around 1–2% of the property’s value annually for upkeep.
- Insurance: Home, contents, life, and income protection can safeguard both partners.
How Much Should You Borrow?
A simple benchmark can guide affordability:
- Monthly repayments should ideally not exceed 28–30% of combined take-home pay.
- Consider other living expenses: utilities, groceries, transport, and lifestyle costs.
- Use online mortgage calculators to simulate scenarios including interest rate changes.
Quick Affordability Checklist
Before committing, check that you and your partner:
- Have calculated all upfront costs, not just the deposit.
- Understand your combined borrowing capacity and repayment responsibilities.
- Have a contingency fund for interest rate rises or unexpected expenses.
- Are clear on shared financial responsibilities and agreements if circumstances change.
- Have consulted a mortgage broker or financial planner to assess your situation.
Proper planning and realistic budgeting help couples avoid financial stress and make the journey to homeownership smoother.
Property Share Structure When Buying With A Partner
One solution to deal with all the complexities of buying together with your partner is to use a structure called property share. This isn’t something that a lot of banks do, but some lenders can offer this option. Effectively, you get a loan in your name only, with your partner being the guarantor. Your partner does the same, and you cross-guarantee each other even though both of you own the property.
What does this look like?
Say you bought a property with your partner for 500,000. Typically, you would get a loan of $400,000, and the loan is in both names. But in the property share model, the bank cuts that $400,000 in two parts. Partner A gets a loan for $200,000, and partner B gets a loan for $200,000. In this case, you are only responsible for your share of the loan.
The nice thing about this structure is if you separate, you’re only responsible for the $200,000, and the partner is responsible for theirs. So if they stop paying, it’s their responsibility (still guaranteed by your property), but it helps protect your credit rating.
Now, the other thing to consider is if you are going to buy a property with your partner and don’t want to do the property share, you may want to start with baby steps. So, maybe share a joint bank account and savings to begin with. This can help you see what it’s like to have your finances intertwined and help you decide whether or not to go ahead with buying together.
Case Study 1: Contribution & Loan Split
Liam and Chloe bought their first home in Chermside, Brisbane in mid‑2025. The property was valued at $950,000. Liam earned $75,000/year, and Chloe earned $55,000/year, and they had both saved for a deposit.
Deposit Contribution
Their total deposit was $190,000 (20% of the purchase price).
- Liam: Contributed $114,000 (60%)
- Chloe: Contributed $76,000 (40%)
Splitting the deposit proportionally ensured fairness based on their incomes.
Loan Structure & Repayments
The remaining mortgage was $760,000.
- They split repayments according to contribution:
- Liam paid $2,280/month (60%)
- Chloe paid $1,520/month (40%)
- Alternative equal split would have meant $1,900/month each, but this wouldn’t reflect financial input.
The proportional plan respected each partner’s equity and made repayments manageable.
Lessons Learned
- Equity matched contribution: Using tenants in common reflected the 60/40 split.
- Open communication mattered: Discussing repayments upfront prevented misunderstandings.
- Joint account simplified finances: All mortgage payments and maintenance costs were managed from a shared account.
This shows how careful planning of contributions and repayments allowed Liam and Chloe to enter the Brisbane property market smoothly while keeping fairness and transparency.
Case Study 2: Ownership Structure & Exit Strategy
Ethan and Sophie bought their first home in Carindale, Brisbane in early 2025. The property was valued at $880,000, reflecting the suburb’s median house price.
Ethan contributed $120,000 to the deposit, while Sophie contributed $80,000, creating an unequal financial input.
Ownership Structure Chosen
They chose tenants in common, registering ownership according to contribution: Ethan 60 %, Sophie 40 %.
- Why this worked: Their contributions were fairly reflected in property equity.
- Alternative: If they had chosen joint tenants, both would have owned 50 %, and Sophie’s lower contribution wouldn’t have been recognised.
- Outcome: The tenants-in-common structure protected both parties’ financial interests and reduced potential disputes.
Exit Scenario That Happened
Three years later, Sophie decided to move overseas for work.
- Because they were tenants in common, she sold her 40 % share to Ethan.
- The sale process was straightforward, and Ethan retained full control of the property.
- Had they been joint tenants, Ethan would have needed to negotiate a buyout or sell the house entirely, despite Sophie contributing less.
Lessons Learned
- Ownership should reflect contribution: Tenants in common ensured fairness.
- Plan for life changes early: Discussing exit strategies prevented conflict.
- Document everything: Their co-ownership agreement clarified responsibilities, repayments, and decision-making.
- Professional advice matters: A lawyer and mortgage broker ensured the process was smooth and legally compliant.
This shows how choosing the right ownership structure can protect equity, prevent disputes, and make property ownership manageable when circumstances change.
Guarantor Home Loans When Buying With A Partner
For many first home buyers, having a guarantor can make the dream of homeownership a reality sooner.
A guarantor, often a parent, uses their own home’s equity to provide additional security for your home loan.
This can help you avoid the cost of Lenders Mortgage Insurance (LMI), which is typically required if you’re borrowing more than 80% of the property’s value.
If you plan on using a guarantor when buying a home with a partner, you’ll need to be extra careful about what happens if you break up, as your parents will be financially entangled in the situation.
Read more: Guarantor Home Loans
Insurance & Risk Mitigation For Joint Buyers
Buying a home with a partner comes with shared rewards—but also shared risks. Insurance and careful planning can protect both partners financially.
Why Insurance Matters
Even the most prepared couples can face unexpected events, such as:
- Job loss or reduced income
- Illness or disability
- One partner leaving the property
Without proper insurance, these events can threaten your mortgage, credit score, and overall financial security.
Key Insurance Types for Joint Buyers
Consider these policies to protect both partners and your investment:
- Life Insurance: Covers the outstanding mortgage if one partner passes away. Ensures the surviving partner can keep the home.
- Income Protection Insurance: Replaces part of your income if you’re unable to work due to illness or injury. Helps maintain mortgage repayments.
- Total and Permanent Disability (TPD) Insurance: Pays a lump sum if you become permanently disabled. Can cover mortgage or living expenses.
- Home and Contents Insurance: Protects your property and belongings against damage or theft.
Emergency Fund Recommendation
Experts recommend keeping an emergency fund of 2–6 months’ worth of mortgage repayments.
- Provides a financial cushion during unexpected events.
- Reduces stress if one partner loses income or temporary repairs are needed.
- Supports long-term financial stability and preserves credit rating.
By combining the right insurance policies with an emergency fund, couples can confidently protect their home and financial future.
Expert Advice: The Key To Successfully Buying Property With A Partner
Buying a home is likely one of the biggest financial decisions you’ll ever make, and it’s even more complex when you’re doing it with a partner. That’s why it’s crucial to seek expert advice. Professionals can provide you with the information and guidance you need to navigate the process confidently and make informed decisions.
Here’s who can help:
Mortgage broker
A Mortgage Broker can play a vital role in helping couples find the right ownership structure and loan to suit their unique needs. They can guide you through the process of applying for a home loan, help you understand the different loan options available, and assist you in finding a loan that suits your financial situation and goals.
Financial planner
A financial planner can also be invaluable, especially when multiple parties are involved. They can help you structure your loan in a way that protects all parties, plan for the future, and ensure that your home purchase aligns with your overall financial goals.
Lawyer
A legal professional can help you understand your rights and responsibilities, guide you in setting up the right ownership structure, and assist you in drafting any necessary agreements, such as a co-ownership agreement.
Key Points To Remember When Buying A Property With A Partner
The trend of buying property before marriage is becoming increasingly common in Australia.
While this path offers many advantages, such as the ability to pool resources and enter the property market sooner, it also comes with its own set of complexities.
Understanding these implications is key to navigating the journey of homeownership successfully.
From discussing financial commitments and setting ground rules to choosing the right ownership structure and preparing for the unexpected, every step of the process requires thoughtful consideration and mutual agreement.
Given the financial and legal implications of buying a home with a partner, seeking professional advice is crucial.
Whether it’s a mortgage broker, a financial planner, or a legal professional, their expertise can guide you through the process and help you make informed decisions that protect your interests.
Remember, buying a home is not just a financial decision; it’s a commitment that affects your life in many ways.
So, take the time to understand the process, communicate openly with your partner, and seek the advice you need to make this significant decision confidently.
Buying A House With A Partner FAQs
Can unmarried couples buy property together in Australia?
Yes. Unmarried couples, including those in de facto relationships, can buy property together. The law treats de facto couples similarly to married couples for ownership. Using a co-ownership agreement is recommended to protect each partner’s rights and outline financial responsibilities.
What happens if one partner wants to sell the property?
If you own as tenants in common, one partner can sell their share independently. With joint tenancy, both must agree to sell. A formal co-ownership agreement clarifies exit strategies and prevents disputes.
How does buying with a partner affect borrowing capacity?
Lenders usually assess combined income, which can increase borrowing power. However, household living expenses for both adults are considered. Poor credit or no income for one partner may reduce the amount you can borrow.
Can my girlfriend take half my house in Australia?
No automatic ownership occurs. Only if she is added to the title (joint tenants or tenants in common) does she legally own a share. Consider a co-ownership agreement to formalize contributions and rights.
Can I buy a house by myself if married?
Yes. Married individuals can buy property in their name only. However, lenders may consider your spouse’s income, debts, and living expenses when assessing borrowing capacity.
If you're married, do both people have to be on the mortgage?
Not necessarily. One spouse can apply alone, but joint applications can increase borrowing power. Lenders will assess household financial commitments for both spouses if one lives with the other.
What are the tax implications of buying a house with your child?
Owning property with a child may affect capital gains tax, stamp duty exemptions, and family tax benefits. Professional advice from a tax accountant or financial planner is strongly recommended.
Can you get a mortgage with someone you're not married to?
Yes. Lenders allow co-buying with a partner, friend, or relative. The mortgage is assessed based on joint income, expenses, and credit history. Ownership and exit strategies should be formalized with legal agreements.
What if my partner has bad credit?
Poor credit may reduce borrowing capacity or increase interest rates. Some lenders allow one partner with good credit to apply alone, or co-ownership structures can be tailored to protect each party.
Do I need a co-ownership agreement?
While not legally required, a co-ownership agreement is highly recommended. It clearly outlines ownership percentages, contributions, repayments, exit plans, and dispute resolution.
Can parents act as guarantors for a couple buying together?
Yes. Parents can guarantee the loan to help avoid Lenders Mortgage Insurance (LMI) or increase borrowing capacity. Consider legal and financial implications, especially in case of relationship changes.
Thinking About Buying A Home With Your Partner? We're Here To Help
If you’re feeling overwhelmed or unsure about any aspect of buying a home with your partner, remember that help is available. Just give us a call on 1300 088 065 or request a free assessment with one of our expert brokers.
We have helped thousands of Australians to buy their first home and we’d love to help you too. .
Remember, the path to homeownership is a journey, not a race. Take the time to understand each step, make informed decisions, and seek professional advice when needed. Your dream home is worth it.
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