How co-borrowing works at NAB

Co-borrower rights and protections

Your rights and obligations will be set out in the loan, but you may also have the benefit of extra rights and protections under the following codes as an individual: 

• The Banking Code of Practice applies if the borrower or prospective borrower is an individual or small business. Find out more in the Banking Code of Practice or on the Australian Banking Association’s website, opens in new window. 
• The National Credit Code (included in the National Consumer Credit Protection Act 2009) applies when a lender provides credit for a charge to a natural person (not a corporation) or a strata corporation, and the credit is used wholly or predominantly for personal, domestic, or household purposes, or for purchasing, renovating, or improving residential property for investment.

Find out more on the Australian Securities and Investments Commission website, opens in new window.

What is substantial benefit?

Once you and your co-borrower/s have applied, we’ll also check if you’ll receive a substantial benefit under the loan. Receiving substantial benefit means that each co-borrower is getting a real and tangible benefit from the home loan – like owning a part of the property, living in it or receiving rental income.

To work out if you’ll get a substantial benefit, we’ll look at whether co-borrowers will get equal benefit from the loan. 

For example, if your loan is to buy a house with one other co-borrower:

If you don’t receive a substantial benefit

You’ll only be accepted as a co-borrower without substantial benefit if:

• you’ve explained why you want to be a co-borrower. 
• we’ve explained the risks involved and the difference between being a co-borrower and a guarantor. 
• you’ve had the opportunity to consider your options. 
• you’ve entered into the arrangement voluntarily, without being pressured or forced into it. If at any stage you feel pressured to be a co-borrower, we can provide you with support.

Asking for help

During the loan, you can ask for help if you experience financial hardship or have difficulty meeting your repayments at any stage. We’ll work with you to help to find a solution that’s right for you. You can also get in touch if you have any issues during the loan application process or loan period.

Tips for successful co-borrowing 

• Be clear on ownership and repayments: Communicate openly with your co-borrower, setting clear goals and expectations.
• Align your financial habits: Make sure your spending, saving and credit behaviours are compatible. One person’s missed repayments can affect both credit scores.
• Talk exit strategies early: Life changes – so it’s smart to plan how things will be handled if one person wants out, sells their share or can’t meet repayments.
• Keep us in the loop: Circumstances can change – whether it’s your income, living situation, or future plans. It’s important to review your loan regularly and let us know if you’d like to make any changes.

First home buyer basics

Have more questions on your first home buyer journey? Our guides answer them all.