4 tips for buying your first home as a couple

If you’ve only got a minute:

• Create a list of must-haves for your new place.
• Have honest and open discussions about finances as avoiding money talks can breed misunderstanding and conflict in future.
• Divide and conquer by delegating tasks and responsibilities based on each individual’s strengths.
• Set up realistic budgets and avoid taking unnecessary debt to cover non-essential expenses.

Purchasing your first home as a couple in Singapore isn’t just about finding a place to live – it’s about embarking on a new chapter together.

For many couples, buying a home marks a significant milestone in their relationship, often coinciding with or shortly after marriage. It’s a tangible expression of commitment and the beginning of a shared journey towards building a life together.

However, the process can be fraught with challenges, especially for first-time buyers as a couple. Here are 4 tips to help you navigate this milestone smoothly.

1. Define your must-haves 

When buying a home together, make sure your partner and you are on the same page about what you want in a home. One of the first steps you should take is creating a list of must-haves for your new place. This helps you determine what's most important to each of you in a home and align on your top priorities.

Some key areas to discuss and define as must-haves or nice-to-haves include:

1. Location - Do you require a certain neighbourhood, proximity to work or family, access to transportation or amenities?
2. Size - Determine the minimum/maximum square footage, number of bedrooms/bathrooms, and features like a swimming pool, balcony/patio that you require.
3. Layout - Must you have an open concept floor plan, separate spaces, multiple floors, etc?
4. Parking - Do you require extra spaces for multiple vehicles?
5. Amenities - Consider must-haves like air conditioning, laundry, storage space, media or workout rooms.
6. School district - If you have or plan to have kids, you may want to live in a certain area.

This will help you narrow down your options and not waste time looking at homes that don't fit your requirements.

To avoid disagreeing about these key factors, it’s best to have an honest talk about your home-owning aspirations right from the start - and agree on a compromise if need be.

2. Discuss finances openly

Money is often a taboo topic in relationships and our society.  However, buying a home as a couple requires financial transparency. Avoiding money talks can breed misunderstanding and conflict.

Have an open and honest discussion about your income, savings, investments, debts, credit scores, spending habits, and financial goals. For example, share your monthly take-home pay, savings account balances, any outstanding loans or credit card debt.

Discuss how to fairly split shared housing costs. For instance, you may opt to split the mortgage proportionally based on your incomes rather than 50/50.

Next, determine how much you're each comfortable contributing monthly for the down payment, mortgage, taxes, insurance, maintenance etc. If your comfort zones don't align, have an open conversation on compromising and come up with solutions together.

Money talks build trust and unity as you take this big step together and being open about money now prevents problems later.

3. Share a task list

Just as how you must work together (with your partner) effectively to create a memorable wedding, you’ll need to employ similar teamwork skills in the home buying process.

Start by dividing and conquering tasks based on your strengths. For example, you might be more financially-savvy, while your partner is better at research and negotiations. In this case, you might want to manage the budget and leave the communications (with property sellers/real estate agents) to your other half.    

Keep track of all documents, communications and important dates by creating checklists and timelines in a shared digital folder or project management app to stay organised.

Regularly discuss priorities, preferences and any concerns by setting regular meetings to sync up.

Make use of tools like DBS MyHome Planner and In-Principle Approval for your home loan to simplify the admin work.

More importantly, maintain motivation and positivity by celebrate “small wins” along the way. For example, have a special dinner or plan a fun activity when your mortgage loan is approved! 

Last but not least, always make final decisions together. 

4. Avoid overstretching your finances

It is likely for you to incur high expenses beyond just the downpayment of your home. The costs of a wedding, honeymoon, home renovations and new furniture – all of which might occur concurrently or within a short timeline and can add up really quickly and become overwhelming!

Take a realistic look at your combined savings and set budgets for the expensive upcoming events. For example, allocate your funds wisely by breaking down the combined savings amount (S$100,000) into various categories – home downpayment (S$50,000), wedding (S$20,000), honeymoon (S$10,000) and home-related expenses (S$20,000).

Do factor in the possibility of an unexpected pay cut or job loss and see if these expenses are still comfortable.

If not, consider reducing your commitments (for example, opting for a more intimate wedding or scaling down your renovation) to free up more cash for your emergency fund and/or expenses that matter more.

Avoid taking on additional debt to cover non-essential expenses such as new furniture/honeymoon as loans and/or credit card debt can quickly become unmanageable. If it’s urgent, consider going for second hand or lower cost options first.

Alternatively, make use of the DBS MyHome Planner to work out your housing budget.

By acknowledging all potential expenses, setting a realistic budget and prioritising spending prevents you from overstretching your finances.

Start Planning Now

Check out DBS MyHome to work out the sums and find a home that meets your budget and preferences. The best part – it cuts out the guesswork.

Start Planning

Alternatively, prepare yourself with an In-Principle Approval (IPA), so you have certainty on how much you could borrow for your home, allowing you to know your budget accurately.

Apply In-Principle Approval