How I'd Choose a Lender for a Sibling Apartment Purchase in Brisbane

I've sat across from more than one pair of siblings who thought buying together was just like buying alone, but with two names on the contract. It's not. The lender you pick matters more when there are two borrowers because every policy about income, deposits and ownership structure gets applied twice.

The Brisbane apartment you're eyeing with your brother, and the $170,000 deposit you've saved, puts you in a decent position. On an $800,000 purchase, $170,000 is a 21.25% deposit. That's above the 20% threshold where lenders start charging lender's mortgage insurance (LMI) — an insurance policy you pay for that protects the lender if you stop making repayments. But here's the catch: stamp duty in Queensland on an $800,000 investment apartment is around $29,000, and there are transfer fees and legal costs on top. If any of that comes out of your $170,000, your actual deposit shrinks, and your loan-to-value ratio (LVR) climbs past 80%. Once LVR goes above 80%, most lenders add LMI to the loan, which can cost thousands.

Start with a mortgage broker

I wouldn't spend a weekend comparing lender websites. I'd find a mortgage broker who works with Brisbane investors. When I managed properties, I saw owners who went direct to a bank get a decent rate but a terrible loan structure. A broker looks at your combined income, employment types, and the fact you're buying with a sibling, then narrows the field to lenders that actually want that deal.

Brokers also know which lenders have offset accounts worth having. An offset account is a transaction account linked to your loan; the balance reduces the interest you pay each month. If you and your brother plan to keep a cash buffer for repairs or vacancies, a full offset account can save you more than a slightly lower rate. Ask the broker to show you two or three options side by side, with the fees, comparison rate and offset features spelled out.

Work out your real loan-to-value ratio

Don't just divide $170,000 by $800,000 and assume you're safe. Add stamp duty, transfer fees, and the broker's or lender's application fees to your total upfront costs. If your total cash is only $170,000, you'll either need to borrow more (pushing LVR higher) or find extra savings. I've seen buyers get a pre-approval at 80% LVR, then at settlement they're scrambling because the duty bill ate their deposit.

A broker will calculate your actual LVR after costs. If it lands at 82% or 85%, you might still get approved, but you'll pay LMI. Sometimes it's worth paying LMI to get into a growth suburb now, rather than waiting two more years while prices move. That's a call you and your brother need to make together, with the broker's numbers in front of you.

Ask how the lender treats sibling co-borrowers

Not every lender loves two unrelated borrowers on one loan. Some will assess both incomes fully, some only the higher earner, and a few will want both of you on the title as joint tenants or tenants in common before they'll even look at the application. Joint tenants means if one of you dies, the other automatically owns the whole property. Tenants in common means you each hold a set share, like 50/50, and that share can be left to someone else in your will.

I'm not a lawyer, but I'd never buy with a sibling without a written co-ownership agreement. That document covers who pays the mortgage, who pays for the new hot water system, what happens if one wants to sell, and how you'll value the property if one buys the other out. In my property management years, I saw co-owners argue over a $600 repair because they never wrote down the rules. Don't be that pair.

Get the loan structure right before you sign

Fixed or variable? Split the loan? Offset or redraw? A broker can explain these without jargon. If you and your brother have different risk tolerances, a split loan lets you fix half and keep half variable, which suits a lot of first-time co-buyers.

The lender you choose today will be with you for years. Pick one that handles sibling co-borrowers without drama, has a competitive offset account, and doesn't load the loan with fees you'll never use. That's worth more than a headline rate.