AffordAssist’s deferred deposits home loans – a gamechanger?


Innovation is not limited to the fields of science and technology. In reality, innovation is nothing but a new way to do things and it can relate to disciplines like commerce and credit. If the double-entry bookkeeping method invention changed the way financial information is maintained, the Deferred Deposit Agreement, a proprietary solution by Sydney-based AffordAssist, is revolutionising Australia’s housing market through its offering to first time buyers.

The innovation is simple yet a major problem solver. It empowers families by eliminating the need to pay the full cash deposit when purchasing a house.

Traditional Home loans vs AffordAssist Deferred Deposit Home loans

In a traditional home loan or mortgage, the service provider (lender) provides loan facility for nearly 80% of the purchase price. The remaining is the deposit payment that the buyer has to arrange, no matter what, for the deal to materialise. But for a very long time, this requirement of deposit money has kept many, particularly first-time buyers out of Australia’s expensive housing market.

AffordAssist’s solution addresses gaps and opens prospects like never before for families looking to buy an abode. Here, home loans come with a support toward the deposit in that the buyer can defer cash deposit for most typically up to five years. The cherry on the top of the deal is deferring comes without any interest levied on the deposit balance. The company, which also provides a range of approved properties for buyers to pick from, is a force to reckon in Australia’s hot housing market.

Offering perfectly designed for the buyer


Image source: Company website 

The whole concept of credit rests on the pillar of the additional component (interest) that the borrower must pay to the creditor. AffordAssist has tweaked this proposition by allowing availing of mortgage for up to 90% of the property value, while the remaining cash deposit is without any interest levy. The buyer wins by entering the property market even when there is a shortage of cash deposit, and further, no interest on deferred deposit allows the buyer to save big-time on costs.

Inflation is pinching 

The Reserve Bank of Australia (RBA) has been raising its cash rate over the past many months for a reason. That reason is inflation, which has breached permissible limits of 2-3% and now sits at a multi-decade high level. The impact of soaring pries is being felt by low- and middle-income families that have been elbowed out from the housing market. Arranging for the initial cash deposit when purchasing the house has become a big challenge due to a considerable drop in dispensable income.

Image; Data source: AffordAssist website

AffordAssist is more

The company has a list of approved properties in Australia, besides having approved lenders and other stakeholders that create an enabling ecosystem for buyers. Aside from assistance in home loans, the company’s unique and proprietary Deferred Deposit Agreement solution makes the impossible possible for the buyer. Lack of funds is no longer a concern, and because the ecosystem is a one-stop solution, the AffordAssist checks all the boxes for those seeking to buy a residential property.

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