Quick answer
You can borrow against property you co-own, but in practice every registered owner has to agree and sign, because short-term lenders take security over the whole property rather than one owner's share. That's true whether you hold it as joint tenants (equal interests, with survivorship) or tenants in common (separate shares that pass under each owner's will). Victorian property can use a caveat loan; elsewhere a registered second mortgage does the job.
Key points
- Your title shows who owns the property and how — joint tenants or tenants in common.
- Lenders want the whole property as security, so every owner on title signs.
- Unequal shares don't limit what can be borrowed; the whole property's equity counts.
- Co-owners who aren't borrowers usually sign as guarantors too.
- The slowest part is often logistics — signatures, witnessing, travel — so plan it on day one.
Plenty of business owners have their best security sitting in a property they don’t own alone. The family home is in two names. A warehouse was bought with a business partner. A holiday house was split between siblings after a parent passed away. When the business needs money quickly, that shared property is often the obvious answer — and the first question is always the same: “Does the other owner have to be involved?”
Short answer: yes. This guide explains why, what the two types of co-ownership mean for a short-term loan, and how to get every owner’s signature without the loan stalling for a week.
How do you know how your property is held?
Look at the title. When two or more people own land, the register records the “manner of holding” — the way they share it. There are two forms.
Joint tenants. Land Use Victoria describes this as ownership by two or more people “where there is a right of survivorship” — when one owner dies, the whole property passes to the survivors. Joint tenants hold equal interests, and no shares are written on the title.
Tenants in common. Here, each owner holds a distinct share. NSW Land Registry Services notes that tenants in common “may hold unequal shares”, that the shares must always be shown on the title (as fractions, decimals or percentages), and that each share passes under the owner’s will rather than to the other owners.
| Joint tenants | Tenants in common | |
|---|---|---|
| Shares | Equal, not shown on title | Equal or unequal, shown on title |
| On death | Passes to the surviving owner(s) | Passes under the owner’s will |
| Typical owners | Couples | Business partners, siblings, investors |
| For a short-term loan | All owners sign | All owners sign |
If you’re not sure, a title search answers the question in minutes. It also shows any existing mortgage or caveat, which we’ll need to know about anyway.
Why does every owner have to sign?
Because our security is the whole property, not a slice of it.
Legally, a tenant in common can deal with their own share. In lending, though, a fractional share is very hard to sell — few buyers want 40% of a house shared with a stranger. So short-term lenders, whose whole model relies on property that could be sold if the exit fails, take security over the entire property. That needs every registered owner’s signature.
The type of security depends on the state:
- Victorian property: a caveat loan, with every owner signing the loan documents that give us our interest in the property.
- Every other state and territory: a short-term registered second mortgage behind the existing bank loan, signed by every registered owner and usually arranged just as quickly. Our page on what we use instead of caveats outside Victoria explains why that’s often an advantage.
- No mortgage on the property: a short-term first mortgage, again signed by all owners.
What is the co-owner actually agreeing to?
Owners who aren’t borrowers are signing up to something real, and lenders want them to understand it. Typically, a non-borrowing co-owner:
- Signs the security — the mortgage or caveat documents over the property.
- Signs a guarantee — a promise to repay if the borrower doesn’t.
- Gets independent legal advice — many lenders ask for a certificate confirming a solicitor explained the documents.
This is where good intentions can cost time. A spouse who has never seen a loan document may want to think about it overnight. A business partner may want their own lawyer to read every page. Both are reasonable. Build it into the timeline rather than hoping it won’t happen.
Do unequal shares change how much you can borrow?
Not in the way most people expect. Because we hold security over the whole property, we look at the whole property’s value and every debt registered against it. A 30% owner and a 70% owner are, from our side, offering the same asset.
How you and your co-owner share the risk and the benefit is a separate matter between you. Some co-owners put a short written agreement in place: who’s borrowing, what it’s for, how the loan will be repaid, and what happens if it isn’t. A solicitor can draft that quickly.
For the equity side, our guide to how equity is calculated walks through the numbers, and the residential property as security page covers using a shared home in more detail. Ready to check yours? Start a 60-second enquiry — no credit check to begin.
How do you stop co-ownership slowing the loan?
Short-term property loans can move very quickly — $20,000 to $250,000 can be possible the same day, and up to $5 million can be possible within 24 to 48 hours. With co-owned property, the clock is rarely held up by us. It’s held up by people. Here’s how to keep it moving:
- Have the conversation before you enquire. Your co-owner shouldn’t hear about the loan from a solicitor’s email.
- Give us every owner’s details upfront — full names as they appear on title, mobile numbers and email addresses.
- Flag travel and distance. An owner who is interstate, overseas or on a remote job site needs a signing plan from day one. Witnessing requirements apply, and overseas signing takes longer.
- Line up independent legal advice early. Ask a local solicitor now whether they can see your co-owner within a day or two.
- Gather ID for every owner, not just the borrower.
- Check for a deceased owner. If one owner has died, the title may need updating first. With joint tenants that’s often simpler; with tenants in common, the share may sit with an estate.
An illustrative example
Invented scenario, round numbers.
A brother and sister in Sydney own an investment townhouse as tenants in common — 70% to him, 30% to her. He runs a plumbing business and needs $200,000 for a fleet upgrade and a large job’s materials. The townhouse is worth about $1,000,000 with a bank loan of $350,000, so total borrowing would reach $550,000, or 55% of the value.
His sister isn’t in the business. She agrees to help on one condition: a simple written agreement that the loan is his to repay and comes out of his share if the property is ever sold. Her solicitor explains the second mortgage and the guarantee, signs off on independent advice, and she signs the next morning.
Because the property is in New South Wales, the loan is a short-term registered second mortgage. It settles within days, and he repays it four months later from the large job’s final payment.
Had the townhouse been in Melbourne, the same deal would have been done as a caveat loan, with the same signatures from both owners.
How does the loan affect the other owner while it’s in place?
Your co-owner should know what changes for them during the loan, not just on signing day.
- Selling the property. If the owners decide to sell, the short-term loan is repaid from the proceeds at settlement, along with any bank loan. Nobody walks away with their share until we’re paid.
- Refinancing the bank loan. A new first-mortgage lender will see the caveat or second mortgage on title and will want it either paid out or formally sitting behind them.
- Further borrowing. Neither owner can easily add more debt against the property while the short-term loan is registered.
- When it ends. Once the loan is repaid, the caveat is withdrawn or the second mortgage is discharged, and the title goes back to how it was.
Because short-term loans are measured in months, these limits are temporary. Agree on the repayment date together and keep your co-owner updated as it approaches.
What if a co-owner won’t sign?
Then that property can’t secure the loan, and it’s better to know early. The realistic alternatives:
- Another property you own alone, or with someone who is willing.
- Property held by your company or trust — see our page on property in a trust or company.
- Unsecured funding for trading businesses, typically $5,000 to $500,000, sized on turnover and bank statements.
- Changing the ownership, for example buying out the other owner. That takes longer and needs legal advice; our page on paying out a business partner covers the funding side.
Bring everyone to the table, then let us move fast
Shared property comes up all the time in short-term lending, and it works well when every owner is on board from the start. If you co-own a property and need business funds quickly, tell us who’s on the title and what you need, and a real person will call to talk through the cleanest structure.
It takes around a minute, and there’s no credit check at the enquiry stage. We don’t circulate your details to a list of lenders — you’re dealing with us directly — so you won’t be chased by people you’ve never heard of. Please be accurate about the property address, the state, every owner on title and your deadline — co-ownership is easy to handle when we know about it from the first conversation.
Frequently asked questions
Can I borrow against my share without asking the other owner?
Tenants in common can deal with their own share, but very few short-term lenders will accept a part share as security because it's hard to sell on its own. In practice, a fast loan needs every owner's consent and signature.
What's the difference between joint tenants and tenants in common?
Joint tenants hold the property together with equal interests, and if one dies the whole passes to the survivor. Tenants in common hold separate shares, equal or unequal, and each share passes under that owner's will.
My co-owner isn't involved in my business. Do they still sign?
Yes, if they're a registered owner. They'll usually sign the security and a guarantee, and many lenders ask them to get their own legal advice first so their agreement is properly informed.
Does owning only 30% limit how much I can borrow?
Not directly. Because our security is the whole property, we look at the whole property's value and existing debt. How the owners share the risk and benefit between themselves is a separate private agreement.
What if my co-owner lives interstate or overseas?
It can still work, but signing and witnessing rules apply, and overseas signing takes longer. Tell us at the start so documents are sent the right way first time.
What if a co-owner says no?
Then that property can't secure the loan. Options include another property you own alone, unsecured funding for trading businesses, or restructuring the ownership — which takes longer and needs legal advice.