A joint mortgage with your parents means you and a parent both borrow and usually both own the home. Lenders count both incomes, and each of you is liable for the whole loan. In NSW, a first home buyer who owns at least half can still get the duty exemption or concession on their share, but the parent pays duty on theirs.

Joint mortgage with a parent at a glance
Question Short answer
Whose income counts? Both, along with both sets of debts
Who owes the loan? Each borrower, for the whole amount
First home buyer duty relief? Yes on your share if you own at least 50%; full relief if the parent owns 5% or less
5% Deposit Scheme? Only if both applicants are eligible
Tax when you sell? Your share can be your main residence; the parent’s usually is not

How is a joint mortgage different from a guarantee?

With a guarantee, the parent offers equity in their own home as security, but they are not on your loan or your title and they do not pay the repayments. With a joint mortgage, the parent is a borrower: their income helps you qualify, their name is usually on the title, and they are liable for every dollar. The guarantor home loans page covers the other path, and the worked example of a guarantee from retired parents shows how lenders view an older family member.

How do lenders assess a parent as a co-borrower?

  • Income and debts. The parent’s income counts, and so do their own home loan, cards and other commitments.
  • Age and retirement. If the parent is near retirement, the lender asks how the loan will be repaid when their income stops. A clear plan, such as you taking over the loan or the parent selling another asset, matters.
  • Loan term. Some lenders shorten the term for older borrowers, which raises the repayment.
  • Joint and several liability. Each borrower is liable for the whole loan, not their half.

The article on home loans for retirees explains how lenders look at income that is about to end.

What does NSW charge in duty when you buy with a parent?

Revenue NSW lets a first home buyer purchase with an equity partner, someone who is not a first home buyer and not their spouse, provided the first home buyer acquires at least 50%. The first home buyer gets the exemption or concession on their share. The parent pays their share of the duty, calculated on the full value of the home. If the parent’s share is 5% or less, the whole purchase gets the first home buyer relief.

Duty on a $780,000 home bought with a parent
Ownership Transfer duty
You alone, eligible first home buyer $0
You 50%, parent 50% $14,643.50, paid by the parent
You 95%, parent 5% $0
Neither of you a first home buyer $29,287

The figures use the 2026-27 NSW duty rates. A spouse can never be an equity partner, and if your spouse has owned a home, you lose the relief whether or not they are on the contract.

Can you use the 5% Deposit Scheme with a parent?

Only if your parent is also eligible. The scheme accepts up to two applicants, including family members, but each must be a first home buyer or must not have owned property in Australia in the last 10 years. A parent who owns their home rules the joint application out. A family guarantee or a gift is usually the better fit in that case; the 5% Deposit Scheme guide explains the rules.

How should the title be held?

Most parents and children buying together hold the title as tenants in common, in set shares that match what each contributed. That keeps the parent’s share in their will and makes the 50% duty rule easy to show. Joint tenants own the whole together, and the survivor takes it all. A solicitor should set this out, along with a written agreement on who pays what, as covered in buying a house with friends or family.

What tax applies to each share?

  • Your share can be your main residence, generally exempt from capital gains tax while you live there.
  • The parent’s share is usually not their main residence, so a capital gain on it is taxable when sold.
  • From 1 July 2027, gains that accrue after that date move from the 50% discount to cost base indexation with a 30% minimum tax.
  • Age Pension. A parent on the pension should check how their share is counted under the assets test.

How does the parent come off the loan later?

You refinance into your own name, which means qualifying for the whole loan on your income alone. If the parent also transfers their share of the title to you, NSW charges duty on the market value of that share, because there is no parent-to-child exemption. Check both points before you buy, not when you want out.

A worked example

A daughter earning a modest salary wants a $780,000 unit. On her income alone she can borrow well short of the price. With her mother as a co-borrower, both incomes count, so the loan is approved. They buy 50/50 as tenants in common. The daughter pays no duty on her half, and the mother pays $14,643.50. Five years later, with a higher salary, the daughter refinances into her own name and buys her mother’s half, paying duty on that half’s value at the time.

Questions people ask

Can my parent be on the mortgage but not the title?

Some lenders allow it, but many want every borrower on the title. If the parent is only providing security, a guarantee is the usual structure instead.

Does a parent on the loan stop me being a first home buyer?

No. You keep first home buyer relief on your share if you own at least 50%, but the parent pays duty on their share.

What if my parent retires during the loan?

The loan continues and both remain liable. Lenders want a plan for repayments after retirement before they approve the loan.

Charles Touma sets up joint loans with parents, checks the duty and scheme rules before you sign and plans the exit so the parent can come off the loan later. A free 30-minute call covers both incomes and the best structure. General information only, not legal, tax or credit advice; have a solicitor set out the ownership and a tax adviser review each share. Sources: Revenue NSW, equity partners and the First Home Buyers Assistance Scheme (updated 2 June 2026) and transfer duty rates; Housing Australia, 5% Deposit Scheme joint applicants; ATO, negative gearing and capital gains tax reform, checked 17 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.