More first home buyers are using joint mortgages to co-buy homes, according to NAB research.
There has been a sharp increase in the number of Australians co-buying a home, as prospective home owners pool their savings to get a foot on the property ladder.
National Australia Bank (NAB) research found joint home loans to friends or family buying together rose by more than 33 per cent between August 2024 and July 2025 compared to the same period the year before.
The strongest growth in co-buying was seen in Victoria (up 47 per cent), South Australia (up 37 per cent), and NSW (up 34 per cent).
NAB home lending executive Felix Sekulla said lower rates and rising confidence in the market were driving more buyers to look to re-enter the market.
“With confidence in the market improving, helped in part by lower rates and more support available through various first-home buyer schemes, many Australians are back looking for their dream home,” he said.
“Buying with someone you trust, such as a close friend or family member, might not be the right strategy for everyone, but for many, this allows them to buy sooner, or buy in an area they might not be able to afford on their own.”
Sekulla also said more first home buyers were getting creative in their search to buy property.
“Some are teaming up with family or friends to purchase together, sharing the financial responsibility to crack the market sooner,” he said.
“Others are opting to rent-vest. Continuing to rent where they want to live while buying in a more affordable location.
“Many are also broadening their search, considering townhouses instead of standalone houses or looking at different suburbs to find better value.”
Rising property prices spur co-buying
Speaking to The Adviser, Effie Nicol, branch principal and mortgage broker at Yellow Brick Road Earlwood, said she has seen a rise in clients inquiring about joint mortgages.
“In the current environment, I’m seeing more clients explore co-borrowing. Mostly, it’s siblings or parents teaming up to buy a home sooner,” she said.
“With prices still rising and the market competitive, joining forces is a practical way to get into the market before it gets even harder.”
Nicol said the trend was being driven by a mix of factors.
“Rising property prices, rates remaining high and tighter lending rules mean many people don’t have the borrowing capacity to buy a home on their own,” she said.
“On top of that, recent changes to the First Home Buyer Guarantee Scheme are bringing more buyers into the market, increasing competition, so people are teaming up to successfully achieve their home ownership goals.”
Paul Sullivan, broker and owner-manager of Mortgage Choice in Pascoe Vale, told The Adviser he had also seen an uptick in joint mortgage inquiries.
“I’m definitely seeing more clients explore co-buying arrangements, particularly among first-home buyers and young professionals who are finding it increasingly difficult to enter the market on their own,” Sullivan said.
Sullivan said co-buying was becoming a practical solution in high-demand areas like Melbourne’s north, where property prices have outpaced wage growth.
Asked what the cause of the increase was, he said the main driver is affordability, but it’s also due to lending capacity.
“With interest rates still relatively high and lenders tightening assessment criteria, pooling resources with a sibling, friend or partner can make ownership achievable years sooner than going solo,” Sullivan said.
While co-buying can open the door to home ownership for more Australians, Sullivan said it requires additional care and planning.
“From a broker’s perspective, co-buying requires extra care around ownership structures and exit strategies,” he said.
“We spend more time ensuring clients understand the difference between joint tenants and tenants in common, and encourage them to formalise agreements outlining how costs, maintenance and future sale decisions will be handled.
“I also encourage clients to seek legal advice early, to avoid any misunderstandings down the track.”
He added that brokers have a key role to play in helping co-buyers navigate the process effectively.
“The opportunity for brokers lies in education and structure – guiding clients to the right lender, setting up the right ownership model and ensuring all parties are protected,” he said.
“Done properly, co-buying can be a great stepping-stone to build equity and move toward independent ownership later on.”
[Related: Brokers braced for action as expanded Home Guarantee Scheme launches]
