New figures suggest that there is a new trend emerging in the mortgage market; non romantic couples entering into a shared mortgage.
It is becoming more and more common for people to enter into a joint borrowing arrangement which maximises their deposit and lowers the ever increasing repayments. The alternatives of soaring rent prices or individually entering a staggering mortgage have forced these platonic loan applications. With debt rates rising, as individuals are struggling to meet repayments with the ever increasing interest rates, it seems the shared option is becoming more attractive.
However there are disadvantages and possible complications. As NSW Law Society president Hugh Macken warns, all parties need to “plan for contingencies”, and that there needs to be a written agreement to avoid discrepancies when it comes time to sell or renegotiate mortgage terms.
For more information on our range of competitive home loans contact ALC on 1300 138 188.