When it comes to major purchases or investments, pooling resources with someone else can unlock doors that might otherwise stay closed. Joint endorsement—sometimes called co-signing or joint application—has become an essential strategy for Australians looking to boost their borrowing power in 2025, whether for a home, car, or business venture. But what does joint endorsement really mean, and how can it help (or hinder) your financial journey?
What Is Joint Endorsement?
Joint endorsement is the process of two or more people applying together for a loan, credit card, or finance agreement. All parties become equally responsible for the debt, and lenders assess both applicants’ incomes, assets, and credit histories when making lending decisions. In Australia, this approach is popular for couples, families, and business partners looking to:
- Increase borrowing capacity—by combining incomes and assets
- Access better interest rates—through a stronger, shared credit profile
- Share responsibility for repayments and ownership
In 2025, joint endorsement is especially relevant as property prices and living costs remain high, and lenders continue to tighten credit assessments in line with updated Australian Prudential Regulation Authority (APRA) guidelines.
Where Is Joint Endorsement Used in 2025?
Joint endorsement isn’t just for home loans. Here’s where Australians are leveraging it most in 2025:
- Home Loans: With median house prices in Sydney and Melbourne hovering around record highs, joint applications are often the only way for first-home buyers and upgraders to qualify for the loan size they need. The 2025 expansion of the First Home Guarantee Scheme has further incentivised co-borrowing among siblings and friends, not just couples.
- Car Loans: Younger Australians are increasingly co-signing with parents or partners to get approved for low-rate car finance, especially as electric vehicle (EV) prices remain above the national average for new cars.
- Business Finance: Small business owners and startups frequently use joint endorsement to strengthen their applications for working capital loans, commercial property finance, or equipment leasing. The Federal Government’s 2025 SME Recovery Loan Scheme has made joint endorsement a key eligibility pathway for new businesses without substantial trading history.
The Benefits and Risks of Joint Endorsement
While joint endorsement offers tangible advantages, it’s not without risks. Here’s what to consider before signing on the dotted line:
Benefits
- Higher Loan Amounts: Lenders can approve larger loans when multiple incomes are assessed together.
- Better Approval Odds: If one applicant’s credit score is lower, the stronger profile of the other may help secure approval.
- Shared Liability: Repayments and ownership are shared, which can make budgeting and asset management easier.
Risks
- Joint and Several Liability: All parties are 100% responsible for the debt. If one person can’t pay, the other(s) must cover the full amount.
- Credit Score Impact: Missed repayments affect everyone’s credit file, regardless of who caused the default.
- Relationship Strain: Financial stress can strain personal or business relationships if circumstances change.
As of 2025, new consumer credit reforms require lenders to provide clearer disclosures about joint liability, and many banks now offer pre-application counselling or digital simulations to help applicants fully understand their commitments.
Real-World Example: Joint Endorsement in Action
Emma and Jason, a Melbourne couple, wanted to buy their first home in 2025. Individually, their incomes wouldn’t qualify for the $900,000 loan they needed. By applying jointly, their combined income and savings met the lender’s serviceability and deposit requirements. They secured a competitive 5.9% fixed rate through a major bank, made possible by their joint application and the bank’s updated lending criteria under APRA’s 2025 guidelines.
Meanwhile, two friends in Brisbane, Sarah and Priya, used joint endorsement to buy a new EV. By sharing the debt and leveraging both credit profiles, they accessed a green car loan with a lower rate than either could have achieved alone.
2025 Policy Updates: What’s Changed?
Australian lending rules have continued to evolve in 2025:
- APRA’s Serviceability Buffer: The buffer on home loan assessments remains at 3%, meaning joint applicants must show they can afford repayments if rates rise significantly.
- Expanded Eligibility for Government Schemes: Programs like the First Home Guarantee now allow more joint applicants, including siblings and friends, not just married or de facto couples.
- Open Banking: Easier sharing of financial data via Open Banking APIs has streamlined joint applications, reducing paperwork and speeding up approvals.
These changes reflect the growing role of shared borrowing in helping Australians tackle affordability challenges and access opportunities together.
Is Joint Endorsement Right for You?
Joint endorsement can be a powerful tool for unlocking bigger opportunities, but it comes with shared responsibility. Before you commit, have an honest conversation about finances, goals, and what would happen if things change. In 2025, lenders are more transparent than ever, but it’s up to you to go in with eyes wide open.
