If you’ve been house hunting in Melbourne lately, you’ll know the feeling — excitement quickly followed by a reality check. You find a home you love, look at the price, and realise you’d need to win the lottery (or wait ten years) to afford it on your own.

You’re not alone. With the median house price sitting well above $900,000, saving a deposit solo is harder than ever. That’s why more people are doing something a little different: teaming up with friends or family to buy together.

It’s called co‑ownership, and it’s becoming an increasingly popular way to get your foot in the door without carrying the whole financial load yourself.

Why Co‑Ownership Is Catching On

Co‑ownership simply means buying a property with someone who’s not your partner — maybe your bestie, your sibling, or your parents. By pooling your savings and incomes, you can buy sooner, borrow more, and even look in suburbs you thought were out of reach.

We’ve seen people make it work in all sorts of ways. Sometimes they move in together and share the home. Sometimes they buy purely as an investment and rent it out. In both cases, they’re not just splitting the mortgage, they’re sharing the opportunity.

How a Co‑Ownership Loan Works

A co‑ownership loan works much like any other mortgage, except there’s more than one borrower. The lender will look at each person’s income, credit history, and deposit contribution, then assess your combined borrowing power.

Once you buy, your names go on the title. You’ll choose between:

  • Joint tenancy It is a common choice for couples. Both owners share full ownership, without individual shares. If one dies, the other automatically takes full ownership.
    Please note:
    It can be ended by:

    1. Selling the property
    2. Switching to tenants in common
    3. Transferring full ownership to one person (who must refinance the loan in their own name)
    • Tenancy in common
      When two or more people buy a property as tenants in common, each person owns a separate share – these don’t have to be equal . If one person passes away, their share goes to whoever they name in their will, not automatically to the other owners. This could result in sharing ownership with someone you don’t know.

      Each person can typically sell their share, which appeals to friends buying together. But selling often triggers refinancing – and if the new buyer can’t qualify, the whole property might need to be sold.

    Which one’s right for you depends on your relationship, your plans, and how you want things to work down the track.

    Pros and Cons of Co-Ownership

    Before entering into a co-ownership arrangement, it is wise to consider both potential benefits and drawbacks.

    The upside is obvious — you get into the market sooner, with less financial pressure. You might even be able to afford something bigger or in a better spot than you could when buying a property by yourself. It can also be a stepping stone into the property market.

    But there are challenges too. People’s circumstances change. One person might want to sell, while the other wants to stay. Someone might struggle to make repayments. That’s why you need more than a handshake agreement. So please make sure legal obligations need to be clearly defined from the beginning.

    Getting the Ground Rules Sorted

    Before you start scrolling through listings, sit down together and have some conversations. Who’s paying what upfront? How will repayments be split? Who’s covering repairs? And the important one — what happens if someone wants out?

    All of this should go into a co‑ownership agreement. A good property lawyer can help you set it up so everything’s clear and fair. It’s not just about protecting your money , but also about protecting your friendship or family relationship.

    Applying for a Co‑Ownership Loan in Melbourne

    1. Get joint pre‑approval – This shows what you can borrow together and helps narrow your property search.
    2. Talk to a broker – Not all lenders can do co‑ownership loans, so having someone who knows the options can save you time.
    3. Sort the legal side – Get your agreement in place before signing anything.
    4. Gather your paperwork – Each buyer will need to provide their own financial documents.

     

    From there, it’s much like any other property purchase — just with more than one set of signatures.

    Why Having the Right Broker Matters

    Co‑buying is a bit different to buying on your own, so having a broker who’s done it before can make a huge difference. At Original Wealth, we know which banks are open to it, how to set the loan up properly, and what potential hiccups to avoid.

    It’s about more than just getting a loan approved — it’s about making sure it works for everyone in the long run.

    How We Help at Original Wealth

    We’ve as a Mortgage broker in Melbourne helped plenty of buyers make co‑ownership work. We’ll:

    • Match you with lenders who support multiple owners loans.
    • Structure the loan so it’s fair and practical for all buyers.
    • Put you in touch with trusted lawyers to draft your agreement.
    • Guide you from pre‑approval right through to settlement.

     

    When you’ve got the right people in your corner, co‑buying stops being a complicated idea and starts being a clear path to owning your own place.

    Buying a home with friends or family isn’t for everyone, but for the right people, it’s a game‑changer. It can help you to get into the market sooner, assist you buy a better property, and let you relieve the financial load.

    The key is planning. Have the discussion with your partner early, get the legal side right, and work with a broker who knows the ropes. Do that, and co‑ownership can be a smart, secure way to turn “maybe one day” into “we did it”!

    Book a free consultation with us today and discover how co-buying can work for you. Find the right support from the start.