fbpx

We Answer Your Questions

If you are asking “Is this real?” then you’ll be pleased to discover that AffordAssist is a genuine gateway to home ownership

We Answer Your Questions

If you are asking “Is this real?” then you’ll be pleased to discover that AffordAssist is a genuine gateway to home ownership

FAQs

A. The fact that we, a small business; not a major brand, not government; not a billionaire,  wanted to be part of the solution to the housing crises; may perplex some. We get asked, why help us? The fact is we care for the real estate industry and feel that first-home buyers deserve a chance to buy if they want to…and by caring enough, we created a program/ a solution to help first home buyers secure a home loan and property. Now that you know it is possible you have a choice.

A. If you are a First Home Buyer with $10,000* (less in regional areas and for Home and Land packages a larger deposit is required) and you can provide work history and rental history that prove your capacity to make repayments, please contact us for a chat.

A. We provide a proprietary Deferred Deposit Agreement (DDA) – that helps a First Time Buyer and a Seller complete a property purchase. The amount that is deferred plus the current available cash including where applicable Government grants and incentives, total to satisfy deposit lending conditions. 

A. Yes. When the Buyer and Seller sign the Proprietary Agreement, the Buyer receives 100% ownership of the title and the keys to their First Home.

A. The proprietary Deferred Deposit Agreement (DDA) is free of interest. Some Buyers may be in a situation where they need an additional lending solution to make up the balance, and that additional product might require payment of interest.

A. Typically the amounts are between 1% to 25% of the property purchase price. It is also possible by agreement between the seller and buyer to have any amount. For example purposes only; a purchase from a family member may result in a 50% DDA with terms of 20 years.

A. A term may vary per applicant and is based on a number of considerations, ie; loan amount, deferred amount, gross income of applicants, property purchase terms and must always satisfy lending conditions. As a guide only 60 months (5 years) is typical. Some applicants have terms ranging from 1 year to 20 years.

A. The AffordAssist approved mortgage brokers provide applicants with the best possible loan solution, which may or may not include a DDA as part of the loan application.

However having a DDA as part of the loan application may in some cases be in the best interest of the client. Scenarios where the client will benefit include:

  1. Increase the cash deposit. With an off-the-plan purchase, the DDA can be used to put additional monthly payments into a trust account ready for settlement. This could be used to top up the deposit to 10%.  
  2. Reduce LMI premium. The DDA offers interest free payments, thus increasing the DDA amount will reduce the LVR and the LMI premium.  
  3. No LMI. Applicants with a large deposit, i.e. 10% to 15% may benefit from a DDA to reduce the loan to below 80%, hence no LMI premium. 
  4. Settlement valuation may differ to the property sold price. A DDA may serve to protect against this potential shortfall or variance.
  5. The DDA may be used as a plan B, in cases where the proposed loan with a higher LVR is not approved, or lending conditions have changed. 
  6. The DDA amount is interest free. When combined with the 1st mortgage the interest rate will average out at a lower amount.
  7. Increase your purchase capacity. Use your cash savings to pay debts. Example, credit cards and or personal loans instead of adding more loans. Thus increasing your 1st mortgage limit, plus AffordAssist may increase your purchase capacity. 

A. We work with a variety of AffordAssist Approved Lenders who believe in the principles of our program and have products that match the needs of First Home Buyers.

A. Stamp Duty requirements tend to vary from each State and Territory in Australia. Visit www.affordassist.com/resources to learn more.

A. While The First Home Owner Grant is a Federal scheme, grant entitlements tend to vary from each State and Territory in Australia. Visit www.affordassist.com/resources to learn more.

A. While AffordAssist was created to help First Home Buyers, Buyers and Sellers have also seen the value of the Proprietary Agreement to help existing sales that are struggling to settle. Additionally on a case-by-case basis, AffordAssist may be used by owner occupiers and investors. Please contact us for further details.

Free Event

Want to learn more about AffordAssist? We can notify you about our next FREE Information Session.

Subscribe To Our Weekly Newsletter

Get property news weekly right in your inbox!

afford-assist-logo-white-green

AffordAssist is an affordable housing program specifically designed to meet the needs of first-home buyers. It is a corporate solution offered alongside government initiatives with a single purpose to increase first-home ownership in Australia.

Talk To Us

Scroll to Top