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Home ownership for Australian couples is most likely to double when compared to singles

Published on November 30th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Two is better than one when it comes to couples having a joint home ownership. A recent survey released by KPMG shows that home ownership is most likely to increase amongst females who are in a relationship by 61% and males by 65% when compared to their single counterparts. However, when it comes to home ownership couples are in no hurry. If you are wondering what home ownership in Australia looks like for couples here is the answer.

Cohabitation is on the increase

Most couples opt to cohabit with each other before deciding on investing in a home that they will one day own. According to the Australian Institute of Family Studies, cohabitation has increased by 77% for both singles and couples and is most likely to occur amongst millennials. A great proportion of Australians are also marrying later in life, with four out of five living with each other before tying the knot, which delays home ownership.

Joint forces make’s financial sense for couples

Being single can make it a bit tricky in the financial section of your life when trying to secure a home. If you are single and earn an average income your chances of buying a home are slim, as it will barely cover the median house price in any of the major capital cities. The average weekly earnings for Australians stood at $1164.60 last year according to the ABS research data. This means in a year the average income is $60,559.20. This will barely cover your mortgage for a home in Perth that has a median house price of $589,100.

Start putting away money

Unless if you have a strong savings account for a down payment on your home deposit coupled with a healthy credit record for a home loan, then Bob’s your uncle. The reality is most millennials are still on the come up, already trying to make ends meet to pay other expenses. On the other hand couples can combine their income into one to make for a stronger chance of securing a home loan for their house. Your best bet is to re-evaluate your budget and finding places where you can make cuts to save towards your deposit.

Lean on me when finances are not strong

For both couples and singles calling on the bank of mom and dad seems to be an appealing platform when they are still trying to find their feet to finance their home. 29% of first-home buyers rely on their parents to help them fund a purchase that can get them towards securing a loan for their homes. Parents need to understand the implications that come with signing up as a guarantor on a loan. Seeking legal help is also advisable before signing your name on the dotted line.

Before you run for a house walk towards a loan

Securing a loan whilst single can be a bit of a process when compared to couples. Married people get viewed as one entity when they are being reviewed for a home loan, unlike singles who are reviewed individually. Compare the market for a loan with fees, features and interest rate that matches your financial situation.

Involving your partner in the home loan application process can leave room for any quarrels when it comes to the question of ownership. It’s advisable that you seek advice from a home loan specialist or legal advice to provide security in the event when things take a short left. It will also help when it comes to paying off the loan when you are unmarried or decide to go separate ways.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for home loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

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