Buying your first home has always been a milestone moment, but today’s market is making that dream tougher for many Australians. As a First Home Buyer, you’ve probably noticed house prices continue to climb while supply struggles to keep up. That’s where a growing trend is emerging: co-borrowing with parents to get into the market sooner.
For many First Home Buyers, the idea of purchasing solo feels impossible. The cost of living, limited housing supply, and deposit requirements can be overwhelming. So, parents are stepping in—not just as guarantors, but as full co-borrowers. Families are choosing to buy one property together and live under the same roof.
This approach has pros and cons. On the plus side, pooling income can boost borrowing power, making it easier to qualify for a larger loan. For First Home Buyers, that can mean access to better locations or bigger properties. Living with parents also reduces ongoing expenses like rent, allowing more money to go toward repayments.
But it’s not without challenges. Co-borrowing means all parties are equally responsible for the debt. If one person can’t make repayments, the others are legally on the hook. Families also need to think about future changes—what happens if someone wants to move out, sell, or refinance? These are important conversations to have upfront.
The rise of co-borrowing highlights a bigger issue: affordability. For many First Home Buyers, the traditional pathway of saving for years and buying alone is simply out of reach. Housing supply is tight, competition is fierce, and prices are climbing faster than wages. Families are finding creative solutions to make homeownership achievable, but it also shows how urgently we need more affordable housing options.
If you’re a First Home Buyer considering co-borrowing, here are some tips:
- Get legal advice – Set up agreements in writing so everyone understands their responsibilities.
- Think long-term – Consider what happens if circumstances change down the track.
- Work with a broker – Lenders treat co-borrowing differently, so having guidance can help you find the right fit.
At the end of the day, co-borrowing can be a stepping stone for First Home Buyers who feel locked out of the market. With the right planning and advice, it can open the door to homeownership sooner rather than later.
Want to get into the market? If you are looking in the next 6-12 months The First Home Buyer Program is where you should start, but if you are looking in the next 3-6 months, A Meeting with the team is your best start.