Buying your first home with a partner: how joint home loans work

Buying a first home with a partner means you apply for the loan together, you both go on the property title, and a lender assesses your combined incomes, expenses and debts. Pooling two incomes can lift your borrowing power and help you reach a deposit sooner, but it also ties you both to the same debt. This guide walks through how a joint application works, the deposit and lenders mortgage insurance rules that apply, and the practical and legal points worth sorting out before you sign anything. The figures here are general and the outcome for any couple depends on your circumstances and each lender’s criteria.

What “buying first home with partner” actually means

When you buy with a partner, you make a joint application. The lender looks at both of you as one borrowing unit: your combined income, your living expenses, any existing debts like car loans or credit cards, and both credit histories. Two incomes can mean a larger loan than either of you could get alone, but two sets of expenses and debts are also counted, so the result depends on your full financial picture.

You also need to decide how you will hold the property title. There are two common ways:

This choice matters for couples and it matters even more if you are buying a house together unmarried, because the law does not assume a relationship between co-owners on title. A solicitor or conveyancer can explain which structure suits your situation.

How much can you borrow and save together

A joint home loan for first home buyers is assessed on your combined position. The more of the purchase price you can cover with your own deposit, the less you borrow and the lower your ongoing costs may be.

A common savings goal is a 20% deposit. According to ASIC’s MoneySmart, a great savings goal for a house deposit is 20% of the purchase price, plus enough to cover buying costs, which will help you avoid paying lenders mortgage insurance. Buying costs include things like stamp duty and conveyancing, and these vary by state and by your circumstances.

You do not always need 20%. MoneySmart notes that some lenders may accept a deposit as little as 5%, but a smaller deposit may mean higher costs like lenders mortgage insurance. If your loan-to-value ratio (LVR), the amount you borrow as a percentage of the property value, is above 80%, you may need to pay lenders mortgage insurance.

To get a feel for what two incomes could support, try the how much can you borrow calculator before you start looking. It is an estimate only, and your actual borrowing power depends on your circumstances and each lender’s criteria.

Lenders mortgage insurance when your deposit is under 20%

Lenders mortgage insurance (LMI) is a cost that often surprises first home buyers, so it is worth understanding early.

LMI is usually a one-off cost. MoneySmart explains that it is payable when the amount borrowed exceeds 80% of the value of the property, which is the same as saying your deposit is less than 20%. Importantly, LMI protects the lender if a borrower cannot repay the loan. It does not benefit you as the borrower, even though you pay for it.

For a clearer picture of how your deposit size changes your loan, our explainer on what LVR means for first home buyers sits alongside this guide.

The steps to buying your first home together

The path from saving to settlement follows a fairly standard order. MoneySmart sets out the buying process, and a joint purchase adds a few shared decisions along the way.

A conveyancer is worth engaging early. MoneySmart describes a conveyancer as someone who helps you meet all the legal requirements involved with purchasing your home, handles most of the paperwork, and reviews and explains the terms and conditions of the contract. Paying a legal expert is widely regarded as the best way to avoid costly mistakes.

Joint loan, joint responsibility: what to agree on first

A joint home loan usually comes with joint and several liability. In plain terms, you are each responsible for the full repayment, not just half. If one person cannot pay their share, the lender can pursue the other for the whole amount. That is true whether you are married, in a de facto relationship, or buying a house together unmarried as friends or family.

A few things are worth agreeing on, ideally in writing, before you buy:

• Who pays what each month, and what happens if one person’s income changes.
• How you will split a sale, and what happens if one of you wants to sell and the other does not.
• Whether a co-ownership or cohabitation agreement makes sense, especially if your deposit contributions are uneven.

These are legal questions, not lending ones. A solicitor can help you set up an agreement that reflects what you have both decided.

Frequently asked questions

Talk it through with the team at Finance Lab

Buying your first home with a partner is a big shared decision, and the right structure depends on your circumstances. The team at Finance Lab can walk you and your partner through your borrowing position, the deposit options, and how a joint loan would work for you. Get in touch to talk it through.