Buying in Joint Names

Buying in Joint names what’s the difference, Joint Tenants or Tenants in Common?

An increasing trend is for people to buy joint property by pooling their resources with friends, family or compatible acquaintances. The main benefit of buying a joint property is it can provide you with the means to enter the property market. However, if you choose this option you need to consider the following:

Choose your co-purchaser carefully.

Are they financially stable and trustworthy? Can you live with this person? (if applicable)

Will you register your property as Joint Tenants or Tenants in Common?

It is important to understand that these options have different legal ramifications for each borrower against the loan. You should discuss these with your solicitor or conveyancer.

What happens if your co-purchaser defaults on his or her home loan payments?

When you buy a property together you become co-borrowers on the same mortgage, which means that each borrower is “jointly and severally liable” for the home loan. This means that if one person defaults on the home loan, the other person/s listed on the mortgage will be held responsible.

Can you still get the First home owner grant if buying a joint property?

When buying a property with someone else, you will still be able to get the First home owner grant if all co-purchasers on the mortgage are eligible to receive it. Read more about the eligibility requirements for the First home owner grant.