With the cost of living on the rise and property prices still stubbornly high in 2025, more Australians are teaming up to tackle big financial goals. Whether it’s buying a first home, funding a business, or consolidating debt, joint loans have become a practical pathway for couples, friends, and even family members. But is joining forces the right move for you? Here’s what you need to know about joint loans in Australia this year.
Why Joint Loans Are Gaining Popularity in 2025
Joint loans have long been popular with couples, but the landscape is shifting. According to the latest APRA data, there’s been a 17% increase in joint loan applications from non-traditional pairs—think siblings, friends, and even business partners. The key driver? Affordability and access to larger loan amounts.
- Shared responsibility: Combining incomes can mean a bigger borrowing limit and improved chances of approval, especially as banks tighten individual lending criteria post-2024 credit reforms.
- Rising property prices: In cities like Sydney and Melbourne, pooling resources is often the only way for first-home buyers to break into the market.
- Flexibility: New products in 2025 let borrowers tailor loan structures—such as split repayments or variable ownership percentages—to suit unique arrangements.
How Do Joint Loans Work? The Essentials
A joint loan means two (or more) people apply together, sharing both the benefits and the risks. In Australia, joint applicants are ‘jointly and severally liable’. That’s finance speak for: if one person can’t pay, the other is on the hook for the whole debt. Here’s how it usually plays out:
- Application: Both parties provide income, credit history, and asset details. Lenders assess combined capacity to repay.
- Ownership: For property, you’ll choose between ‘joint tenants’ (equal shares) or ‘tenants in common’ (flexible shares, common among friends or investors).
- Obligations: All signatories are responsible for repayments, regardless of individual agreements.
Example: Emma and her brother Jack, both single, decide to buy a Melbourne apartment together. Emma earns $85,000 and Jack $70,000. Individually, neither could secure a $700,000 loan—but together, their combined income, and savings boost their chances and let them split costs.
2025 Lending Policy Updates and What They Mean for Joint Borrowers
This year has brought several noteworthy changes for joint borrowers:
- Stricter serviceability checks: APRA’s 2025 guidelines require lenders to more closely examine both applicants’ ongoing expenses and any existing debts. That means joint applicants need to be upfront about all financial commitments.
- Credit reporting changes: Comprehensive credit reporting (CCR) is now standard. Both applicants’ repayment histories—on everything from credit cards to BNPL services—are scrutinised.
- New loan structures: Several lenders now offer ‘flexi joint’ loans, where repayment responsibilities can be split unequally—ideal for buyers with different incomes or ownership shares.
- Exit strategies matter: Lenders increasingly want to see a documented exit plan—what happens if one party wants out, or if a relationship breaks down. A legally binding co-borrower agreement is strongly recommended.
Risks, Red Flags, and How to Protect Yourself
While joint loans can open doors, they’re not without pitfalls. Here’s what to keep front of mind:
- Credit entanglement: If your co-borrower misses payments, your credit score takes the hit too.
- Changing circumstances: Breakups, job loss, or unexpected expenses can strain even the best partnerships. Make sure you both understand the legal and financial consequences.
- Getting out isn’t always easy: Selling a jointly owned property or refinancing the loan may require both parties’ agreement—and can be tricky if relations sour.
Tip: Before signing, have a frank discussion about long-term goals, potential risks, and what happens if things go sideways. A written agreement prepared by a legal professional can save a lot of pain down the line.
Who Should Consider a Joint Loan?
- Couples looking to buy their first home or investment property
- Friends or siblings teaming up to break into tough markets
- Business partners seeking shared finance for commercial ventures
- Anyone with a trusted partner, clear communication, and a shared financial goal
Not sure if it’s for you? Consider your risk appetite, long-term plans, and how much trust you place in your co-borrower. A joint loan isn’t just a financial partnership—it’s a personal one too.
