Just Married? Here’s What to Know Before Applying for a Home Loan Together
Getting married is an exciting milestone, and for many couples it’s also the time they start thinking about buying their first home together.
While applying for a home loan as a couple can increase your borrowing capacity, there are also a few important things banks look at when assessing joint applications. Understanding these early can help you avoid surprises when you’re ready to buy.
Here are some of the key things newly married couples should know before applying for a home loan together.
1. Banks Assess Both Incomes — But Also Both Debts
When you apply for a home loan together, lenders combine both incomes to calculate how much you can borrow.
However, they also combine all liabilities from both applicants. This includes:
• Credit cards
• Personal loans
• Car loans
• HECS / HELP debts
• Buy Now Pay Later accounts
Even small liabilities can reduce borrowing capacity, so it’s often worth reviewing these before applying.
2. Your Spending Habits Matter
Lenders will review recent bank statements to understand your living expenses.
Things that may affect serviceability include:
• High discretionary spending
• Frequent gambling transactions
• Regular Buy Now Pay Later usage
This doesn’t mean you need perfect finances, but lenders want to see that your spending is manageable relative to your income.
3. Credit Card Limits Reduce Borrowing Power
Many buyers don’t realise that lenders assess credit card limits, not just the balance.
For example:
A credit card with a $10,000 limit may reduce borrowing capacity even if the balance is $0.
Reducing unused credit limits before applying for a home loan can sometimes increase borrowing capacity.
4. Deposit Size Affects Your Loan Options
The size of your deposit can determine:
• Whether Lenders Mortgage Insurance (LMI) applies
• Which lenders are available
• Your interest rate options
Generally speaking:
20% deposit avoids LMI
10–15% deposit may still have competitive options
5% deposit may be possible for some first home buyers depending on eligibility
There are also government schemes that can help some buyers purchase with smaller deposits.
5. Talk to a Broker Before House Hunting
One of the biggest mistakes buyers make is finding a property first and then trying to arrange finance under time pressure.
Speaking to a mortgage broker early can help you understand:
• Your realistic borrowing range
• Which lenders are best suited to your situation
• What deposit and costs you should plan for
This allows you to search for property with confidence rather than guessing your price range.
Final Thoughts
Buying your first home as a married couple can be an exciting step, but preparation is key.
Understanding how lenders assess joint applications can help you position yourselves strongly when the time comes to apply for a loan.
A bit of planning around debts, spending habits, and deposit savings can make the process significantly smoother.
Need Help Planning Your First Home Purchase?
At Echidna Equity, we help buyers understand exactly how much they can borrow and which lenders are best suited to their situation.
If you’re planning to buy your first home together, feel free to reach out and we can help you explore your options.