Buying a home with a partner: 6 things to consider

1. What's your ideal home together?

When thinking about your ideal home together, it's important to start by being realistic about what you can afford and how much debt you're comfortable taking on. Take some time to discuss the type of home you're looking to buy and where you want to live.  

Here are some things to consider when deciding what your ideal home looks like: 

• Is this your first home together or your next home? 

• Could the home be used as an investment property in the future, or is it your dream home? 

• Have you chosen the location based on convenience (such as distance to work or being in a good school zone), for a sea change, or affordability?  

• Have you factored in any changes to your transportation needs and budget? 

By taking these factors into account, you'll get a better idea of what is going to work for the both of you.   

2. Consider your payment histories

It's important to consider whether either of you have defaulted on any payments in the past. Even if your partner is currently relatively debt-free, it's worth discussing whether this has always been the case. 

Just one negative mark on a credit file, such as a missed mobile bill payment or a default on a credit card, can impact your ability to secure finance. It doesn't mean that you won't be able to get approved, but it may require you to address any credit issues before applying or to assess whether applying together will help or hurt your application.  

If your partner does have a poor credit rating, it may be better to leave them off the home loan application. If this is the case however, it's worth seeking professional advice before making any decisions. 

3. Assess your savings balances

It's great if your partner has been saving towards a deposit, but it's important to remember that the balance is just one factor that lenders consider when assessing your application for a home loan. 

If your partner has been able to build up their savings over time by making regular contributions and managing their finances well, this can be seen as a positive indication that they will be able to make regular repayments on a loan. 

However, if the savings have come from a redundancy payout or a gift from family, while still helpful as a deposit, they may not be viewed in the same way as a proven history of saving. It will usually depend on how long this type of lump sum has been held in a savings account for and also what the loan to value ratio is of your new home loan. 

Savings aren't the only thing lenders look at however - they also consider your ability to service a loan. This means is your ability to make repayments on a loan - while still meeting your other financial obligations and living expenses. Qantas Money Home Loans takes our responsible lending obligation to ensure your serviceability very seriously. We will only lend what we know you are comfortable you can afford, taking into account your anticipated ongoing income, financial commitments and living expenses, as well as potential changes to your interest rate that may occur in the future. 

4. Considering a joint bank account?

While many couples opt for a joint account to automatically debit home loan repayments and share financial responsibilities, not all home loan applications require a joint bank account. Some couples may prefer to keep separate accounts. Understanding how you both prefer to manage your accounts, how you budget, and what your overall relationship with money is like is important when planning on purchasing a home together. So open communication will be particularly important as you embark on your home ownership journey together. 

Whether you decide to keep separate or merge your finances or not isn’t the key to a successful home loan application. It’s demonstrating your ability to manage your outgoing costs while also saving money. By showing that you are capable of managing your finances responsibly - for example saving regularly, paying bills on time and managing existing debts -  you can increase your chances of being approved for a home loan.  

5. Plan ahead 

Circumstances can, and do, change. For example, you or your partner could lose your source of income or you may have a child (or two). The point is, you don’t necessarily have to account for every possibility, but you do need to both be confident that you’ll handle whatever comes your way. 

6. Involve a lawyer

Some moments around significant life decisions require a legal perspective. Though paying for this can sting, it may just be better to bear the up-front cost with a lawyer and save money in the longer term. 

^* You have to be a Qantas Frequent Flyer member to apply for the Qantas Home Loan. This information has been prepared without considering your objectives, financial situation or needs. You should consider your circumstances before acting on this information.