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Borrowing as tenants in common

With more Australians delaying marriage until later in life, and four out of five married couples living together before tying the knot, buying a home with your partner can seem like a great way to get onto the property ladder.

The average age of first-home buyers has remained constant at 32 years old for 2 decades, the median age of marriage in 2015 was 31.8 for men and 29.8 for women, compared to 29.5 for men and 27.6 for women in 2005, according to data from the Australian Bureau of Statistics.

If you are already living with your partner, your finances will likely have already merged to some degree, and buying property together may have crossed your mind. After all, it’s easier to secure and service a home loan with two incomes rather than one.

Although couples are choosing to get married later in life, they are still happy to make the financial commitment of buying a home together before tying the knot.

Couples are choosing to buy property when they are financially ready, rather than following the more traditional model of marriage first, home second.

65 per cent of couples have already purchased a home prior to their wedding. Most of them were already living in it together, while those who hold off on moving in together until after the wedding are in the minority.

Joint borrowing: important issues when co-borrowing money as “tenants in common” When a group of people borrow money together as tenants in common, lenders will usually just add up the incomes, commitments, assets and liabilities of each member in the group and assess the group together. All the purchasers’ names will go on the mortgage and title deed and the co-borrowers will be jointly and severally liable for each other’s debts. Useful Links: What if I want to sell out? Mortgage default: what happens if I am a co-borrower and one of us defaults?