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Buying with friends: is taking out a mortgage with mates worth it?

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I’m seeing a huge increase in friends taking out mortgages together to get their foot on the every-increasingly difficult property ladder. And it seems to be a strategy that’s working. 

According to research conducted by the NAB, 40% of young Australians would consider buying a property with someone other than a romantic partner – a sign of the changing times. 

With rising interest rates and increased competition, newcomers to the property market are feeling less overwhelmed by the pressure of waiting for marriage to buy a home, and more enthused by the idea of buying with a mate. And why wouldn’t they? 


The increase in mortgage mates

By the close of 2022, we saw national rents increase to 6.7% – up 2% from the previous year. Some tenants even saw their rents increase between a whopping 10-30%! With more and more renters unwilling to pay off their landlord’s mortgage, there’s been a huge shift towards younger buyers opting to take out a mortgage with a mate instead. 

Another common reason for pals to buy a house together is the affordability of their desired suburbs. While some first time buyers are willing to wait until well after they’ve said their nuptials to buy a property in their dream suburb, many young buyers today are saying “why wait?” and grabbing a home quick smart – with a little help from their friends, of course. 


Strategies for avoiding conflict

I know what you’re thinking, and I’ll admit, I thought the same once too. Friends buying together – not a good idea! However, times have changed and with so much information and ‘no strings attached’ professional advice available to you, mates taking out a mortgage can actually be a winning idea. 

But before you dive in with your bestie on a property purchase, it’s important to discuss the nitty gritty details – even if it feels awkward to begin with. 



Talk about your strategy for saving for a deposit. How long do you anticipate you will each need to meet the ‘deposit threshold’? Will you pay equal shares, or will one of you fork up a little more than the other? It is imperative you nut these details out before making any decisions. 


Property upkeep

You’ll also need to consider, who will pay for property maintenance? Will every financial outlay for repairs be split 50/50? Will you have the freedom to add a few aesthetic details to the interior or exterior of the home at your whim? 



Do you both intend on living in the house? What if one of you enters into a romantic relationship, or simply wants to invite friends over at the weekends? Is your buddy a party animal, or a recluse? Where do you stand with in-home socialising? This is a biggie that you’ll need to be honest about from the get-go. 


Legal support

I suggest engaging a solicitor before buying, to ensure both parties are protected in the long run. This will give you piece of mind going forward, so each buyer understands what is expected of them and what their obligations are up front.


Make a plan

Several issues can arise during the buying process if you haven’t discussed every potential issue in detail beforehand, so it is best to set aside time to talk about what you want in and from a property to see if your expectations align. Make a list of your concerns and expectations ahead of time, schedule in a coffee date and put everything out on the table. If you hope to buy a house with this person, it can only work if you both remain open to discussion and negotiation. 


That said, this is an exciting time for first home buyers, regardless of your situation! Whether you’re buying with a friend, a cousin, a partner or a parent, Kitty & Miles are the buyers advocates for you! 

We have the professional connections you need to secure your next property without delay. Dream home up for auction? We’ll be your auction sniper! Got your eye on a home in the suburbs? Kitty & Miles will make the purchase a reality. Give us a call on (02) 8916 6172 or email our team at to get started! 

For further information on our buyer’s agent services please view our Services page here

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