An award-winning pathway to homeownership
We know that when it comes to getting on the property ladder, it can feel like the odds are stacked against you – because they kind of are! One new lenders mission is to remove the biggest barrier to home ownership for Aussies today: the deposit.
The median house deposit is huge
In Sydney, we’re talking over $258K for just the deposit. But you also need money set aside for stamp duty and taxes, pushing you into the $300K+ savings range.
Saving for a deposit is taking a decade
It would take the average saver, earning $100k+ annually, 9.99 years to save for a deposit. Gone are the days of working for a few years to buy your first home – complete with a garden and a white picket fence.
House prices have been outstripping wages for years
Housing prices are 30% higher than where they would be if in line with wage growth. In fact, since 2014, Sydney property price growth has increasingly outpaced wages. So yes, boomers like to say the interest rate on their home loan was 17%. But it has never been harder than today.
Homeownership is tied to wealth
Australians over the age of 65 who own their home have a median net worth of $960,000. In stark contrast, the median net worth of similar households that still rent was just $40,800. So, homeowners over 65 are worth over 23 times more than renters of the same age.
Housing is becoming hereditary
Chances are, your friends who’ve bought did so with direct financial support from their parents. 2 in 3 first homebuyers get help from the Bank of Mum and Dad*.
A 20% deposit on the median house is $258,706
PS – your avocado toast isn’t the problem – It’s almost impossible to save your way to a median house deposit. No matter what you might have heard, your avocado toast and lattes are not the problem
For more information or to discuss your own borrowing power, reach out for your free, no-obligation chat.
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Statistics from *Australian Bureau of Statistics