Buying With Family Or Friends

Property Share

Want to split your property costs with someone else?

Property Share is a simple home loan option that allows multiple people to buy a property together and share the costs, while keeping their finances separate. It’s great for homebuyers and investors looking to refinance or enter the property market sooner.

This guide provides important information to consider before applying for this type of loan.

Eligibility

  • Available to Individuals, non-trading Companies and/or Family/Unit/Hybrid Trusts.

To qualify for a property share loan, all borrowers must:

  • Be owners of the property (no third-party guarantors allowed).
  • Guarantee each other’s home loans as security support only.
  • Show they can handle the minimum required repayments for their own home loans.
  • Get independent legal advice before entering into a Property Share arrangement.
  • Sign a Statutory Declaration.
  • A maximum of two home loan applications per security is allowed.
  • However each application may have multiple borrowers or multiple loan products (such as a split loan).

The Benefits

  • Divide property costs as desired; each borrower manages loans and repayments independently.
  • Customise home loans to individual needs: choose amount, type, term, and repayment structure.
  • Benefits include entering the property market with a smaller deposit and building equity faster.
  • Allows investment with multiple parties while keeping finances separate.

    The Risks

    • In a Property Share arrangement, you guarantee repayment of the other borrower’s home loan if they can’t pay.
    • If they default, the lender will try to recover the debt from them first.
    • As a last resort, the lender may insist on selling the property that secures your loan to repay the debt.

    Important: Agreeing to be a guarantor and providing a guarantee comes with substantial financial risk. This could mean losing your property (even your family home) or facing significant financial loss. If there’s a default and you must repay the guarantee, it could also hurt your credit score

    Did you know?

    Each borrower can choose a home loan product that suits their needs. The features, benefits and interest rates of the selected home loan(s) will apply. We will guide you through the different options available and find the best fit for your unique situation.

    Ready to explore your options and find your dream home?

    Contact us today on (02) 9095 6888 and talk to one of our specialist mortgage brokers who can help you navigate the process of Property Share Loans and find the best approach for your unique situation.