Have you been struggling to put together your deposit for a home, enabling you to access a first buyer home loan? You may not be alone!
The Real Estate Institute of Australia think that this is an ongoing issue for first home buyers, and that your superannuation could be the answer to accessing home loans.
REIA President Peter Bushby wants people to be able to access their super funds for a deposit on a home, and then repay this over a longer period. This means you could buy a home much earlier in life, and access bigger and better equity from it. This could give you not one, but two nest eggs from an early age.
If you’re looking into a first home loan, this could be of interest to you in the future. While superannuation home deposits are not a reality for Australians yet, it is a scheme that has been seen in other countries like Canada and New Zealand. The ability to get a foothold in the property market early on could be invaluable, especially if you find a home in a high growth area. Just imagine, you could be a homeowner well before you ever expected to!
Depending on how much you have stored in your super and how much you’re able to access, you may be able to bypass lenders mortgage insurance as well. This could reduce the overall time you spend paying a loan off.
While those with existing home loans can access their superannuation in some circumstances to clear debt, opening up superannuation for first home buyers is an exciting possibility. For more information on how to make your home deposit work best for you, a mortgage broker can provide advice on this important part of home preparation.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.