You and your sibling can agree on the suburb, the deposit and who gets the larger bedroom. The harder conversation is what happens if one of you wants to move out while the other wants to stay.
Separate home loans sound like a tidy answer. You make your repayments; they make theirs. Nobody has to argue about whose spare cash should go into the mortgage.
That flexibility exists, but it has limits. Commonwealth Bank's Property Share arrangement lets eligible co-owners manage separate borrowing while guaranteeing each other's loans as security. Separate accounts do not mean the other person's financial problems cannot reach you.
For friends or siblings buying together, understanding that distinction matters as much as agreeing on the purchase price.
What separate borrowing can help you do
Imagine one buyer wants to pay down their loan quickly while the other needs more room in their monthly budget. Sharing ownership need not mean choosing identical loan features.
CBA's Property Share arrangement allows up to two home loan applications against a property. That is a limit on applications, not people: an application can include multiple borrowers and loan splits. Every borrower must be an owner and demonstrate they can repay their own borrowing.
For someone who expects to make extra repayments and keep savings accessible, the Standard Variable Rate home loan offers unlimited additional repayments and linked offset accounts. Money in an offset can reduce the balance used to calculate interest without being paid into the loan itself. CBA advertises this loan with a Wealth Package annual fee, so ask whether the features justify the total quoted cost for your expected balance and savings.
Your co-buyer may value different features. Request an individual quote for each proposed loan, including ongoing fees, rather than assuming one advertised rate describes the whole purchase. These are market examples, not confirmation that Flexdoc can arrange this particular CBA structure.
The property still connects you
The uncomfortable question is whether you could keep your own repayments up and still face trouble because the other owner cannot.
Under Property Share, that risk remains. CBA's guide warns that a default can ultimately lead to sale of the shared property, serious financial loss and a possible impact on your credit report. Paying your own account on time does not remove the guarantee.
That should change the conversation before you buy. Would either person have enough cash to manage a period without income? How would you find out about a missed repayment early? What would you do if the person who wants to stay cannot afford the whole property?
There is no need to assume the worst about someone you trust. You are deciding how much financial interdependence you are comfortable accepting, particularly when your jobs, savings or plans are different.
Agree on the exit before the offer
A larger deposit can help a purchase happen, but it also raises questions about ownership, costs and what each person receives on a sale. ASIC's Moneysmart guidance recommends agreeing on those issues and future decisions before buying together, with a legal agreement to clarify responsibilities.
Each of you should obtain independent legal advice. CBA requires legal advice and a signed statutory declaration for Property Share; its guide specifies independent advice. Ask your adviser to explain both the proposed ownership arrangement and the guarantee documents. An agreement between friends should not be treated as the bank agreeing to release either of you.
Make the exit discussion specific. If one person wants out, how will you agree on a value? How long would the other have to organise a buyout? Who pays sale costs if that cannot happen? Ask the lender what approval and changes to the loans or security would be needed, rather than promising each other an easy refinance.
There are smaller decisions worth settling too. Allocate rates, insurance, repairs and any strata costs, and agree how unexpected bills will be funded. The mortgage is only part of owning the home.
Start with the arrangement, then the property
Before booking another inspection, put your proposed contributions, individual borrowing needs, ongoing cost split and likely holding period on one page. Include what each person would want if their circumstances changed.
Flexdoc is a broker, not the lender. In a home-finance discussion, bring that page and your individual income and debt details. Ask which lending structures are available for your circumstances and what each would mean for repayments, security and an eventual exit. Have each person's legal adviser assess the ownership and guarantee implications before committing.
A workable co-purchase needs more than two people who can afford today's repayments. It needs an arrangement both can understand when their plans stop matching.