CBA and Property Share – exciting times ahead!
In light of the growing housing affordability problem and looming interest rate rises CBA is now working with PodProperty, Australia’s leading co-ownership service to provide a co-ordinated financial and legal solution to help home buyers pool their resources to get into the property market.
Commonwealth Bank’s newly launched Property Share allows people buying a property together to keep their loans entirely separate. Both parties act as cross guarantor for each other, but such a loan structure allows for each party to pay back their loan at their own pace and to take out different sized mortgages.
The importance of putting in place a co-ownership agreement is well-recognised as it can take the emotion out of the purchase and assist lasting relationships between co-owners.
As all parties are liable for each other’s loan obligations a co-ownership agreement can help mitigate problems when one party can’t make a mortgage repayment.
A specially prepared PodProperty agreement is a fraction of the price a normal solicitor would charge, making co-ownership very affordable.
This newly formed alliance means that CBA customers will now have access to both CBA’s new financing solutions and PodProperty’s co-ownership agreement, allowing home buyers to “ease the squeeze” when entering the property market in the context of low housing affordability and high interest rates.