Finding it hard to purchase your first home? Co-ownership might be your answer


Desperate to get into the property market? One way you can get the funding needed to buy a home is by teaming up with your parents, family or friends to jointly buy a property and finally break out of the rent cycle.

Co-ownership is when two people share ownership of a property. This allows multiple purchasers to borrow on one property using separate loans.

There are two ways you can buy a house in tandem with your parents/family or friends; you can be tenants-in-common or joints tenants.

Tenants-in-common is the more popular arrangement as it allows you to divide ownership of the property in whatever way you like, such as 60/40 or 70/30. Under this ownership structure, if one party dies, their share of the property is passed on according to the terms of their will.

Under a joint tenancy arrangement, ownership of the property is split 50/50. If one joint tenant dies, their share of the property is automatically passed to the other joint tenant regardless of what their will says.

Some key points about co-ownership:

  • A maximum of two loan facilities per security are allowed – each loan can have multiple borrowers
  • All borrowers must be owners of the property
  • All applicants must be able to prove serviceability for their loan amount
  • The loans can be for different loan amounts, different loan types, durations and payment structures
  • Each applicant must guarantee each loan, for security purposes only
  • The property can be used for owner occupier or investment; applicants can have different purposes, i.e. one is the investor and one the owner occupier

To find out if you qualify for this type of loan product, please contact Melcorp Finance on 03 8616 8388 or visit 

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