Buying a home together
Buying a property with a partner is a major milestone — and a significant financial commitment. Understanding how joint mortgages work in New Zealand helps you make informed decisions and protect both parties.
Benefits of a joint mortgage
- Combined income — two incomes mean you can borrow more. A couple earning $130,000 combined may borrow significantly more than a single person on $70,000
- Shared costs — splitting the deposit, repayments, and expenses makes homeownership more affordable
- Combined KiwiSaver — both partners can withdraw KiwiSaver and apply for the First Home Grant separately
Types of joint ownership
Joint tenants
Most common for couples. You both own the property equally. If one partner passes away, ownership automatically passes to the surviving partner (right of survivorship).
Tenants in common
Each partner owns a specified share (e.g., 60/40 based on contribution). If one partner passes away, their share goes to their estate (not automatically to the other). More common for friends buying together or when contributions are unequal.
What happens if you separate?
This is an uncomfortable topic but an important one. Options typically include:
- One partner buys the other out — the remaining partner refinances the mortgage in their name only
- Sell the property — split the proceeds (after repaying the mortgage)
- Keep the property jointly — rare, but possible as a rental investment
Under the Property (Relationships) Act, relationship property is generally split 50/50 for couples who have been together for 3+ years, regardless of who contributed more.
Protecting yourself
- Get a property sharing agreement — especially important for de facto couples and if contributions are unequal
- Contracting out agreement — a legal agreement to divide property differently from the default 50/50 split
- Independent legal advice — each partner should have their own lawyer for contracting out agreements
- Life and income insurance — protect each other if one partner can no longer contribute
Frequently asked questions
How does a joint mortgage work for couples in New Zealand?
A joint mortgage combines both partners' incomes and debts to calculate borrowing power. Both borrowers are legally responsible for the full debt. If one partner can't pay, the lender can pursue the other for the entire amount. Joint mortgages allow higher borrowing but shared liability.
What are the ownership structure options for a joint mortgage?
The two main structures are tenants in common (each owns a specified percentage share, can be willed separately) and joint tenants (equal 50/50 ownership; if one dies, the other inherits automatically). Discuss your situation with a lawyer to choose the right structure for your circumstances.
What happens to the mortgage if we separate or divorce?
Both partners remain legally liable for the full mortgage until it's formally discharged or refinanced. One partner typically buys out the other's share, or the property is sold to pay off the debt. If the remaining partner can't qualify for a new mortgage alone, they may be forced to sell. Protect yourself with legal advice early.
Can one partner be removed from the mortgage after separation?
Not automatically. The remaining partner must either refinance into their sole name (if they qualify alone) or sell the property to discharge the joint debt. Lenders won't remove a borrower from an existing loan, so refinancing is the only path forward if one partner wants out.
What protections should couples consider before taking a joint mortgage?
Consider a matrimonial property agreement clarifying ownership, buyout rights, and separation procedures. Use tenants in common ownership if shares are unequal. Ensure both partners independently understand the full liability and debt implications before signing. Consult a lawyer to protect your interests.
Compare joint mortgage options
See current rates for joint mortgages from all NZ lenders and find the best deal for your household.