• Joint tenants vs tenants in common determines who legally owns the property, not the home loan
• Joint tenants typically share equal ownership, while tenants in common can split ownership differently.
• The structure you choose can affect inheritance, control and future property decisions.
• Understanding your ownership options can help you plan when buying with others.
Buying a property with a partner, family member, or friend is a common way to enter the property market. Beyond choosing a home loan and setting your budget, there’s another important decision to make: how the property will be legally owned.
This is where joint tenants and tenants in common come into play.
These terms don’t relate to your home loan. Instead, they describe how ownership is recorded on the property title.
While they may sound similar, they can lead to different outcomes over time, especially when it comes to control, selling, or what happens if one owner passes away.
Understanding the difference early can help you choose a structure that aligns with your situation and long-term plans.
Joint home loans vs property ownership
Before we get into the details, it helps to separate two concepts that are often confused.
Joint home loan
This refers to the mortgage. It determines who is responsible for repayments.
Property ownership structure
This refers to the legal title. It determines who owns the property.
For example, two people may take out a joint home loan together but choose to own the property as tenants in common if they contribute different amounts.
What is joint tenancy?
A joint tenancy is a form of property ownership where all owners hold equal shares in the property, with no defined percentages.
Key features of joint tenancy
Each owner has an equal interest in the property
Ownership is not divided into percentages
All owners have equal rights to the whole property
A principle known as the right of survivorship applies
The right of survivorship means that if one owner passes away, their share automatically transfers to the remaining owner(s), rather than forming part of their estate.
When joint tenancy is commonly used
Joint tenancy is often chosen by:
Couples buying a home together
Long-term partners
Situations where ownership and contributions are relatively equal
It’s generally used where there is a shared intention to own the property together as a single unit.
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What is tenants in common?
A tenants in common arrangement allows multiple owners to hold hold equal or unequal shares in a property.
Key features of tenants in common
Ownership can be split into defined percentages (e.g. 50/50, 60/40)
Each owner’s share is separate and identifiable
There is no right of survivorship
Each owner can generally decide how their share is distributed through their will
This structure provides more flexibility, particularly where contributions differ or where owners want to retain individual control over their share of the property.
When tenants in common is commonly used
Tenants in common may be considered in situations such as:
Friends or siblings buying together
Unequal financial contributions
Investment properties
Buyers who want their share passed on to someone else
Key differences between joint tenants and tenants in common
Feature | Joint Tenants | Tenants in Common |
|---|---|---|
Ownership split | Equal | Can be equal or unequal |
Legal shares | Not defined separately | Defined as percentages |
Right of survivorship | Yes | No |
Inheritance | Automatically passes to other owner(s) | Can be left in a will |
Flexibility | Lower | Higher |
While both structures allow multiple people to own a property, the key difference is how ownership is divided and what happens over time, especially in life events like selling or inheritance.
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What happens if one owner passes away?
This is one of the most important differences between the two structures.
Joint tenants
If one owner dies, their share automatically transfers to the remaining owner(s). This happens regardless of what is written in a will.
Tenants in common
Each owner’s share forms part of their estate. This means it can be passed on according to their will or, if no will exists, according to applicable laws.
Because of this, some buyers choose tenants in common when they want more control over how their share is distributed.
A note on CGT and the 2026 reforms
For investment properties, the proposed 2026 capital gains tax (CGT) and negative gearing reforms add another factor worth understanding.
Under the proposed reforms, expected to apply from 1 July 2027, investors who owned an investment property before 7:30pm AEST on 12 May 2026 are expected to remain eligible for the existing negative gearing rules for as long as they continue to own that property.
How these proposed rules would apply if ownership changes, such as when a property is inherited after the owner's death or transferred following a relationship breakdown, has not been explicitly clarified in the legislation.
Existing ATO guidance explains how CGT generally applies to inherited assets and relationship breakdown transfers, including when the original acquisition date may be preserved for CGT purposes.
However, whether those rules also apply to the proposed negative gearing grandfathering provisions has not been confirmed.
Sources: ATO — How CGT applies to inherited assets and ATO — When the relationship breakdown rollover applies
If you're estate planning, jointly own an investment property or are working through a property settlement, it may be worth speaking with a qualified tax adviser about how the proposed reforms could apply to your circumstances.
This information is general in nature and does not constitute tax, legal or financial advice. Consider seeking independent professional advice before making decisions about your situation.
Can you change ownership structure later?
In some cases, it may be possible to change from joint tenants to tenants in common (or vice versa). This is usually done through a legal process involving the property title.
However, the process can involve:
Legal documentation
Potential costs
Stamp duty or tax considerations (depending on the situation)
Because of this, it’s worth carefully considering your ownership structure early in the buying process.
Things to consider when choosing between the two
There’s no single ownership structure that suits everyone. The right choice depends on your circumstances, goals, and relationship with the other buyer.
Here are a few practical considerations:
1. Financial contributions
Are you both contributing equally to the purchase? If not, tenants in common may allow you to reflect on this more clearly.
2. Long-term plans
Do you intend to own the property together indefinitely, or could your circumstances change over time?
3. Estate planning
Do you want your share to automatically transfer to the other owner, or would you prefer it to form part of your estate?
4. Level of flexibility
Do you want clearly defined ownership shares, or are you comfortable with equal ownership?
These are not just legal decisions, they can affect how the property is managed and what happens over time.
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How ownership structure affects selling or exiting
Ownership structure can also influence what happens if one party wants to sell.
In both arrangements, selling the entire property typically requires agreement from all owners
Under tenants in common, individual shares can sometimes be transferred or sold (subject to legal processes and agreements)
Disputes or disagreements may require legal resolution
Because of this, it’s a good idea to have clear agreements in place when buying with others from the outset.
How a broker can help when buying with someone else
While ownership structure is a legal decision, your home loan still needs to align with your overall plan.
An Aussie Broker can help you:
Understand how borrowing works when applying together
Compare loan options from a panel of lenders
Walk you through how repayments may be structured
Help you prepare for the application process
They can also work alongside your solicitor or conveyancer to help ensure everything lines up as you move forward.
Bringing it all together
Buying property with someone else involves more than just combining borrowing power.
You’ll also need to decide how the property is owned, and that choice can affect control, flexibility, and what happens in the future.
In simple terms:
A joint home loan determines who is responsible for repayments
Ownership structure determines who legally owns the property
Taking the time to understand both can help you make a more informed decision before you buy.
What to do next
Choosing between joint tenants and tenants in common is just one part of buying property with someone else. It often sits alongside decisions about borrowing, repayments, and how you plan for the future.
If you’re not sure how these pieces fit together, an Aussie Broker can walk you through your options and help you understand how your loan structure may align with your ownership plans.
