ME's general manager Lino Pelaccia tells MPA what his bank can do for first home buyers
ME's general manager of broker sales, Lino Pelaccia tells MPA what his bank can do for first home buyers
How can ME help first home buyers overcome the deposit gap?
Lino Pelaccia: Research from ME shows one in 10 Australians are saving to buy a home. That’s a lot of people working towards the same goal. And it can be done.
One of the best ways to close the deposit gap is by following a budget. As well as helping you save for your purchase deposit, your budget will let you see how well your finances will stand up to home ownership.
First home buyers can also boost their deposit by improving the return their money earns. If your savings account is paying a ho-hum interest rate, consider transferring your stash to a bank offering a better deal. Be sure to look for an account paying a consistently strong rate without fees attached.
Has the profile of an average first home buyer changed in the last five years?
LP: The average age of Australians buying their first home has shot up over the last decade. Many first home buyers are now predominantly in their 30s or even 40s.
What features of home loans are first home buyers looking for?
LP:We’re finding that our basic home loan − our no-nonsense loan without all the bells and whistles – is popular with first home buyers. It offers a competitive variable rate, redraw when you need it, but no application or account-keeping fees.
Should brokers get parents involved in the first home buying process?
LP: A home loan should be strictly assessed on the first home buyer’s ability to repay a loan, not their parents’.
ME research has revealed that loans and gifts are common to enable first home buyers to scrape their deposit together. However, any loan with or without interest should be declared as a liability on the application, and any financial gift promised, which is not yet in their bank account, should be clearly outlined in a letter signed by their parents.
How can ME help first home buyers overcome the deposit gap?
Lino Pelaccia: Research from ME shows one in 10 Australians are saving to buy a home. That’s a lot of people working towards the same goal. And it can be done.
One of the best ways to close the deposit gap is by following a budget. As well as helping you save for your purchase deposit, your budget will let you see how well your finances will stand up to home ownership.
First home buyers can also boost their deposit by improving the return their money earns. If your savings account is paying a ho-hum interest rate, consider transferring your stash to a bank offering a better deal. Be sure to look for an account paying a consistently strong rate without fees attached.
Has the profile of an average first home buyer changed in the last five years?
LP: The average age of Australians buying their first home has shot up over the last decade. Many first home buyers are now predominantly in their 30s or even 40s.
What features of home loans are first home buyers looking for?
LP:We’re finding that our basic home loan − our no-nonsense loan without all the bells and whistles – is popular with first home buyers. It offers a competitive variable rate, redraw when you need it, but no application or account-keeping fees.Should brokers get parents involved in the first home buying process?
LP: A home loan should be strictly assessed on the first home buyer’s ability to repay a loan, not their parents’.
ME research has revealed that loans and gifts are common to enable first home buyers to scrape their deposit together. However, any loan with or without interest should be declared as a liability on the application, and any financial gift promised, which is not yet in their bank account, should be clearly outlined in a letter signed by their parents.
