A step-by-step guide to buying a house with your partner

Considering buying a home with your partner? Congratulations! This is one of the biggest commitments you could possibly make, and it could also be a huge opportunity for you both.

It's a chance to build your wealth together by repaying a mortgage, enjoying capital gains, or even renovating. More importantly, owning your own property provides you security and certainty knowing that you'll always have somewhere to call home.

That said, buying property in an expensive market like Australia is no small feat - even if you've got two incomes. To make it easier and get you started on the right track, we've put together a guide to saving a deposit, budgeting and buying together.

Set a common goal

Before you start saving a deposit or trawling websites, you've got some serious talking to do. Early in the process it's a good idea sit down and reaffirm that you both want to buy property, then agree on what exactly you want in a home.

It may be useful to split your shared requirements into must-haves and nice-to-haves so that you can compromise when you eventually start house hunting. Your criteria should generally include things like:

• Ideal locations and distance to work.
• Number of carparks and if you need an internal garage.
• Minimum number of bedrooms.
• The type of home (i.e. stand alone, townhouse or apartment).
• Whether you're happy to spend time and money renovating, or want a property that's ready to move in.
• What type of outdoor area you need (i.e. just a balcony or grass and a yard).
• Whether you want to build your own, buy a unit “off the plan”, or buy an existing property.

It will take a lot of discussing to figure out what you both need and what you're willing to compromise on but it's better to spend the time now to make your house hunt easier later. Your criteria may also change as you begin house hunting or  as you discuss your requirements with your finance provider.

Run the numbers

Consider using websites like realestate.com.au and Domain to take a look at properties that have sold recently and fit your shared criteria. This will give you an indication of what the purchase price of your ideal home may be.

Once you've got a rough price in mind it's time to find out if you can realistically afford it:

• Deposit: it's generally best to have a 20% deposit ready when purchasing property, however, you may be able to buy with less. Get in touch with our team to find out what's possible in your situation.
• Borrowing power: consider using our borrowing power calculator to get a rough idea of how much you may be able to borrow to buy a home.
• Repayments: consider using the Qudos Bank home loan repayment calculator to find out what your repayments could be.

Once you've done your sums, take a look at the results. Will you both be able to realistically save the amount you need for a deposit? Is a bank likely to lend you the amount you need to purchase your ideal home?

And if you were to purchase the home, would you be able to make your home loan repayments without impacting your lifestyle, or causing yourselves financial stress?

The answers to these questions will give you an indication of whether or not you can afford your ideal home. If you can - that's awesome! If not, perhaps a few small compromises could help ensure the numbers stack up.

Save that deposit

Once you've run your numbers it's time to get saving! Start by figuring out exactly how much you can each afford to put aside every payday after you've covered your living costs - that savings rate will tell you exactly how long it'll take to save your deposit.

Once you get started it could be a good idea to set up an automatic transfer to move your monthly savings into a separate account with a high interest rate, like the Qudos Bonus Saver. Doing this is a great way to prioritise saving over spending and ensure that you reach your goal as quickly as possible.

Apply for home loan pre approval

After you've saved your deposit it's time to apply for a home loan and get the pre approval together. Making an application is easy– you can either make an appointment at a Qudos Bank branch or start the application online, quick and easy.

To apply you'll both need to have some information handy, including details of your income, assets and liabilities. If you're not a Qudos Bank member you'll also need a driver's licence or passport to verify your identity.

If your application is successful, you'll get an indication of the amount you'll be able to borrow as a couple. Using this you'll be able to start your property hunt, confident that you've got the funds you need to buy your dream home.

Buying property can be a big decision, but it doesn't have to be a complicated process! Talk to our team in branch or over the phone to see how we can help you today.

Published July 2022