Property Share Option

Property Share is a home loan option which allows friends to buy a property together but keep their finances separate.

Key features

• Property Share allows borrowers to purchase one property using separate loan facilities. Note: A maximum of two loan facilities per security is allowed (see example);
• Each loan facility can be for different amounts, with different loan types, duration and payment structures;
• All applicants must be owners of the property – i.e. no third party guarantors;
• Customers must prove servicing for their own loan facility;
• Customers must always guarantee each others loan(s) (security support only);
• Loan to value ratio, LVR, is calculated on the combined debt, and lenders mortgage insurance, LMI, (where applicable) will be split proportionately and capitalised to each loan;
• Customers must seek mandatory legal advice before entering into a Property Share arrangement and sign a Statutory Declaration which will be sent with the guarantee to each guarantor;
• This option is available on Home Loans, Investment Home Loans and Lines of Credit.

Ability Finance can help you apply for a property share home loan and the easiest way to get started is to send us your information using our quick home loan enquiry form or we can be telephoned on 02 8002 4035
How does Property Share work?

Example: Nick and Sue and their friend James currently rent a house together. They want to buy a house together but want to keep their finances separate.

• James takes a loan for $250,000 in his name (one loan facility);
• Nick and Sue take out two loans totalling $250,000 in their name (one loan facility);
• Both loan facilities would be liable for LMI in this example.

Property Share Home Loan Example