Buying a house as a couple: How to avoid financial tension?

A couple in front of a house with a man handing them a key

Buying a home is a key milestone in the life of a couple. It's an exciting project, but it can also become a source of stress and tension, especially when it comes to financial matters.

Between the initial down payment, sharing costs, and decisions regarding the mortgage, it's essential to prepare thoroughly to avoid disagreements that could harm your relationship.

In this article, we’ll give you practical advice on buying a house as a couple while avoiding financial tensions so you can enjoy this experience in a calm and harmonious way.

Openly discuss your financial situation

The first step to avoiding financial tensions when buying a house as a couple is to communicate openly about your respective financial situations. Too often, couples avoid talking about money out of fear it will cause conflict, but this only increases the risk of disagreements in the long run.

Assess your borrowing capacity

Before you start searching for a house, discuss your income, any existing debts, and your ability to save. This will help you determine your borrowing capacity as a couple and establish a realistic budget.

Use mortgage simulators to find out how much you can borrow based on your combined incomes. This will give you a clear idea of what kind of property you can afford.

If one partner has significant debts, this can affect the couple’s overall ability to get a favorable mortgage. It's important to lay all the cards on the table to avoid surprises along the way.

Be transparent about financial expectations

It’s also crucial to discuss your long-term financial expectations. Does one partner want to work less in the coming years? Do you have life plans that will require financial adjustments (traveling, children, etc.)? By addressing these topics, you’ll avoid committing to a financial situation that doesn’t match your shared life plans.

Define how to share home-buying expenses

When you buy a house as a couple, it’s important to clearly define how you’ll divide expenses, both for the initial down payment and for mortgage repayments.

Splitting the down payment: 50/50 or proportional?

One of the first financial challenges is the down payment. Some couples choose to split it equally, while others prefer contributions based on each person's financial capacity. There's no right or wrong way, but it’s essential that everyone feels comfortable with the agreed arrangement.

Let’s say one partner has a down payment of 200,000 MAD and the other 100,000 MAD. You can choose to split the down payment proportionally or find a balance that suits both parties.

If the down payment is unequal, it can be useful to draw up a contract that states how the shares of the property are divided based on each person's contribution, especially in case of a future separation. This document can be drawn up by a notary.

Dividing monthly mortgage payments

The same principle applies to monthly mortgage payments. You can choose to repay the loan equally or in proportion to each person’s income. The latter model is often fairer, especially if one partner earns significantly more than the other.

The goal is for each person to feel invested in the shared project while respecting the other's financial capacities. An unsuitable division can lead to frustration, especially if one partner feels disadvantaged.

Protect your interests with a clear contract

When buying a house as a couple, it’s important to protect everyone’s interests by drawing up a contract that clearly states the division of property shares and the responsibilities in case of separation or death.

The marital regime or cohabitation agreement

If you are married, the marital regime you chose will play a key role in managing your property. Married couples under a community property regime automatically share ownership, while couples under a separation of property regime can decide to buy the property in distinct shares.

If you are not married, it’s strongly recommended to draw up a cohabitation agreement. This document sets the rules for dividing ownership and responsibilities in case of separation.

For example, an unmarried couple buying a house can set up a cohabitation contract stipulating that one partner owns 60% of the property and the other 40%, based on their respective contributions. This avoids disputes in case of resale or break-up.

Consult a notary for legal advice tailored to your situation. A well-written contract can save you from tensions if disagreements arise in the future.

Protection in case of death

It’s also important to plan for protection in case one partner dies. Taking out a death and disability insurance is a recommended solution to prevent the surviving partner from facing financial difficulties or losing the house. This insurance allows the mortgage to be paid off if one of the borrowers dies.

Plan for additional and unexpected costs

Buying a house doesn’t end with the purchase price and mortgage payments. There are many additional and unexpected costs that can quickly create financial tension if the couple is not well prepared.

Notary fees and taxes

Notary fees, registration fees, and property taxes are a significant part of the total cost of buying property. Before committing, make sure these costs are included in your overall budget.

If you’re buying a house for 1,000,000 MAD, notary fees are usually around 7% of the sale price, i.e., 70,000 MAD. It’s important to plan for these expenses from the outset to avoid last-minute financial pressure.

Renovation and maintenance costs

Once you’ve bought your house, there will be maintenance costs and sometimes renovations to do. Make sure you have a financial reserve to deal with unexpected expenses (repairs, upgrades, etc.). Not having this fund can quickly lead to conflict, especially if a large unplanned expense arises.

Practical tip: Create a joint savings account dedicated exclusively to covering your house's maintenance costs. This allows you to share responsibility and minimize tension in case of unexpected expenses.

Make financial decisions together

To avoid financial tensions when buying a house as a couple, it's crucial to make all decisions together. This applies to choosing the property, the size of the loan, and additional expenses. By working as a team, you reduce the risks of misunderstandings and disagreements.

Be involved in the buying process

Even if one partner is more involved in finances or property searching, it’s important for the other to also take part in discussions and decisions. This strengthens the sense of collaboration and prevents one partner from feeling left out or treated unfairly.

Buying a house is a life project and both partners should be equally committed to prevent frustration or feelings of injustice.

Set priorities together

When defining your criteria for buying a house, take the time to discuss your common priorities. Are you looking for location, size, proximity to schools, or budget as the top priority? By setting priorities together, you’ll avoid tension linked to differing expectations.

Conclusion: A harmonious property project as a couple

Buying a house as a couple can be a rewarding experience, provided you prepare for each step to avoid financial stress.

By openly discussing your financial situation, dividing expenses fairly, and protecting your interests with a clear contract, you can approach this adventure with peace of mind.

The most important thing is to make all decisions together, respecting each other's capacities and expectations. With good communication and a structured approach, buying your house as a couple will be a success.

Ready to take the step of buying property as a couple? Discover the best offers on Housing Place and find the home that matches your shared dreams.