No Deposit Home Loan

Property Share Option

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

Property Share Option 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);
• LVR is calculated on the combined debt, and 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.
• Note: The Property Share option can be used in conjunction with the $0 Deposit Home Loan Option – as long as eligibility criteria for both loan options are met.

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.

Contact Ability Finance brokers on 02 8002 4035 or email a finance broker using this contact form for more information about property share option.

Property Share example