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Co-ownership

Buying together may get you into a home sooner.

Pooling your deposits and incomes with family or friends may help you buy a home you couldn't buy on your own. We'll help you understand how much you may be able to borrow together, and how to set up your lending so it's clear for everyone.

Thinking of buying together?How much can I borrow?
Buying a home together

At a glance

One application

everyone assessed together

Lawyers

help you agree shares and plans

$0

usually what our advice costs for home loans

Who buys together

Buying with people you trust

Siblings or friends

Often adults who have been working for a while and have each saved towards a deposit, in KiwiSaver, cash or both.

Parents and adult children

Some parents buy with a grown-up child. Lenders assess each borrower on their own merits, so a child who has only just started working may not be accepted.

Couples not yet married

You may want to record who put in what, in case your circumstances change later.

Example

How lenders look at co-ownership.

Illustrative only. Lending depends on each person's income, debts, the deposit and lender criteria. Some lenders may ask each of you to get independent legal advice.

Considering co-ownership?How much can I borrow?

The lender assesses all of you as one application. Everyone’s income counts, but so do everyone’s debts, and each of you is usually responsible for the whole loan.

Friend A's deposit$50,000
Friend B's deposit$30,000
Total deposit$80,000
Loan for a $700,000 home$620,000

How we help

Buying together, step by step

  1. 1

    Know your borrowing capacity

    We work out how much you may be able to borrow together, before you start looking.

  2. 2

    Plan the structure

    We help you think through how to set up the loans, such as splitting them so each person's repayments are clear.

  3. 3

    Find the right lender

    We compare lenders and handle the application for all of you.

  4. 4

    Keep it on track

    We work with your lawyers through to settlement, then review your lending as your circumstances change.

Talk to Mortgage Pundit

Before you buy

Things to talk about before you buy

These are for you to agree between yourselves, with advice from your own lawyers.

Each person's share, especially if your deposits are different.

How you'll own the property. Your lawyer will explain the options.

Who pays what, including the mortgage, rates, insurance and repairs.

What happens if someone wants out

What happens if someone can't pay their share.

A written agreement, prepared by your lawyers, so everyone knows where they stand.

What lenders look for

In the end, it’s the lender’s decision whether to accept each person on the loan. Lenders generally prefer co-owners who have a steady work history and have saved towards the deposit themselves. If you’re all first home buyers, you may each be able to use your KiwiSaver, and the First Home Loan allows two or more buyers.

Buying your first home?

Questions we hear often

Co-ownership questions

Still have a question?

Call us or book a time. There’s no obligation.

Call 0800 PUNDIT
Who can I buy a home with?

It's up to the lender to accept each person on the loan. Lenders generally prefer co-owners with a steady work history and savings of their own, such as siblings or friends who have been working for a while.

Can more than two people buy a home together?

Yes. Some lenders may limit how many people can be on one loan, so we'll find one that suits your group.

Am I responsible for the whole loan or just my share?

Usually the whole loan. Each borrower is generally responsible for the full amount, so it's important to trust the people you buy with.

What if one of us has bad credit or other debts?

It may affect how much you can all borrow, or which lenders will consider your application. Tell us early, so we can plan around it.

Can we put in different deposit amounts?

Yes. How you record each person's share is for you to agree between yourselves, with advice from your lawyers.

Will the lender ask us to get legal advice?

It may. Some lenders ask each co-owner to get independent legal advice before the loan goes ahead. Your lawyers may also help you plan for the future, such as what happens if one of you wants to sell.

Do I pay for your advice?

For home loans, usually not. In most cases the lender pays us when your loan settles.

Thinking of buying together?

A free, no-pressure chat may show you what's possible when you combine your deposits and incomes.

Talk to Mortgage PunditCall 0800 PUNDIT