Buying Your First Home With A Friend?
It’s no secret that buying a property is expensive - which is why many people are choosing to team up with a friend or family member to make their purchase.
But whether you’re buying a home with your best friend, your brother, or even a parent, securing finance is one important thing to think about.
Buying a property with a family member or friend is usually referred to as a common purchase.
This means that two or more people jointly own interest in a property - either in unequal or equal shares. This type of purchase isn’t for everyone - you’ll want to consult with your mortgage broker as well as a lawyer to help you draft up a co-ownership agreement in case one of you decides to move on in the future.
These agreements can also set out the specific proportion of ownership, as well as who will be liable for the various costs, which include the mortgage, as well as maintenance and upkeep of the property.
Your mortgage broker can talk you through your various options when it comes to home loans - some lenders may permit you to mortgage each share of the property separately, while others may not. Knowing exactly where you stand before you get started can help you make an informed decision.