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Property Share Home Loan

Property Share Option Property Share was 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.

How did 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
Property Share Home Loan Example