How to talk to your partner about buying a house together

Buying a house with a partner is a big step, but it's often one that's worth taking. It's great to be able to settle down with someone you love. Once the process is completed, you will both have somewhere to call your home.

While we don't want you to ruin your happy moment, it is important that you have honest, open-ended discussions with your partner before making such a major life-changing decision. It will help you be more successful in the future by being clear about your goals.

We've compiled four things you should consider before you buy a home together.

Approach the conversation realistically.

The most significant transaction that you have both committed to is buying a house together. It is important that you have the same visions of the future as your partner.

While the conversation should include finding the perfect home and applying for the right mortgage, it is also important to discuss your relationship in order to make sure that your life goals are aligned. It's important to be realistic about such a huge commitment and not get too caught up in the moment.

Share your finances with each other.

After having a big discussion about your life direction, it is time to discuss your finances with one another, if not already. This is a crucial moment to determine where you stand as a couple before moving on to the home-buying process.

You will need to discuss a budget that is based on your respective financial resources and agree on a figure. Talk about your concerns regarding credit scores, outstanding debts, and retirement goals.

Be as transparent as possible about your finances with your partner. There is no place for you to hide your financial problem when buying a house. Open and honest conversations are the best way to determine how much your budget is.

Talking about the future may be beneficial, regardless of whether you're buying a car, going on a vacation, or starting a family. If you plan on budgeting for the future, create a five-year plan that includes major expenses that could impact your ability to repay your mortgage.

Think about how you'd like to split repayments

There are many ongoing and upfront costs involved in buying a house. These include solicitor fees and deposit payments, as well as utilities and council tax. These costs may not be the best fit for your relationship, even though it may make sense to split them.

It is important to consider who makes more and who pays off their debts. These factors could have an impact on how you decide to divide up your repayments. These conversations should be had early on and sorted out at the beginning.

Before you make any home purchases, it is important to detail the workings of each share in a legal document. It will also ensure that you know what your rights will be in the event of a future split.

Talk about it and ensure that you both are happy with the agreement. You can ensure that neither party feels pressured to spend more than they can afford.

Discuss what happens in the event of a breakup

We don't mean to be negative, but it is important to be realistic about your future. Life doesn't always go as planned. It's possible to save a lot of heartaches if you break up with your partner. After all, the last thing you want at a difficult time is to be wrangling over your property.

If you are in a joint tenant agreement, you each should receive 50% of any property sold by default. It can be difficult to be tenants in common. Therefore, it is worth discussing a Deed of Trust (with a solicitor) that will help you determine what happens to your property assets if you split up.

While it may not be something you want to think about right now, doing some research now will help you gain clarity and confidence in the large investment you are making.

Conclusion

A mortgage broker can provide many benefits for a very low price. You can save time and money while still getting the best deal possible for your situation. You will also feel secure knowing that a mortgage expert handles your finances. If you are looking to buy a home in Burnaby or Vancouver, The Mortgage Specialist helps you find the best possible deal. So what are you waiting for? Call a mortgage broker now or Book an Appointment.