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Pooling resources with someone you trust can make property ownership more achievable, without tying your finances together as co-borrowers on the same loan. A property share loan lets two borrowers buy one property together while each has their own separate loan, both secured by the same property. You’ll both be on title and guarantee each other’s loan but have flexibility with how you each structure and manage your debt.

Who it may suit

• Siblings or family members co-investing in an additional property.
• Younger singles teaming up with a friend to enter the market.

Why Consider It

• Separate loans, shared ownership: You co-own the property but each manage your own loan and repayment strategy.
• Flexibility: Choose different loan structures (fixed vs variable, P&I vs interest-only, offset) tailored to your situation.
• Investment potential: Pooling deposits and borrowing capacity can open doors to properties that may be out of reach as a sole borrower.

Things to be mindful of

• Shared responsibility: As mutual guarantors, you’re liable if the other borrower can’t pay.
• Exit strategy: Agree upfront on how a sale or buy-out will work, including valuation and timelines.
• Legal agreements: A co-ownership agreement helps set clear rules and avoid disputes.
• Relationship dynamics: Money and property can strain relationships, clarity and documentation are key to helping avoid this issue.

How It’s Typically Structured

• Title: Usually Tenants in Common with defined shares (e.g., 50/50 or 60/40).
• Loans: Two separate facilities secured by the same property; both borrowers guarantee each other’s loan.
• Costs & records: Decide how to split deposit, duty, legals, rates, insurance, maintenance—and keep clean records from day one.

The Bottom Line
Property share loans are one tool in the toolbox for buyers who need, or, want to co-purchase a property with someone else for a variety of reasons. They're not just about affordability, they're about flexibility, collaboration and pooling of individual resources. If you're considering this option, it's worth chatting with your bank or broker about how it could fit into your specific situation.