Dear All
It seems that more property developers are leaning on creative financing to keep sales moving, retire existing debt, clear out remaining inventory, shift focus to new projects, and in some cases, boost profit margins.
A recent example is ALAND’s announcement:
“ALAND HOME LOANS – Making it easier to buy an ALAND apartment with no or low deposit.”
By offering in-house vendor finance and no-deposit entry, developers are bypassing traditional banking barriers to accelerate settlements.
I am also aware of a number of developers offering vendor-finance arrangements where interest is payable on the deferred portion of the deposit, effectively turning what appears to be “deposit support” into a form of higher-cost lending for buyers.
New ideas and deposit solutions are essential — but they raise an important question:
For long-term success, which is better — vendor-led in-house schemes, or an independent approach like AffordAssist that protects both buyers and developers?
Rewind to 2020:
On January 14, 2020, AffordAssist announced via LinkedIn:
“ALAND is Now AffordAssist Approved.”
That pairing of a trusted builder with a transparent deposit deferral program involved a limited allocation of properties, and 100% achieved successful settlement — proof that the model works when structured with independence and governance in mind.
Governance Matters: Protecting All Stakeholders
Creative financing can be powerful, but without a proper governance process, the consequences of a failed arrangement can be severe — even financially ruinous.
Over the past eight years, AffordAssist has been presented to many property developers. In some cases, overzealous developer teams attempted to replicate or bypass the AffordAssist framework to reduce costs or “do it themselves,” without fully appreciating the importance of robust governance.
The results? Unfortunately, these attempts sometimes ended in financial setbacks for all stakeholders — lenders, Lenders Mortgage Insurers (LMI), developers, and buyers alike.
AffordAssist’s structured governance process ensures that deposit deferrals are handled transparently, compliantly, and securely — protecting everyone involved while delivering successful settlements.
AffordAssist Is Not Vendor Finance
AffordAssist is not a lender or financier.
Key distinctions:
- No money is lent or receipted
- No vendor finance is provided or recorded
- The vendor has no influence over loan servicing, application, or approval
- The vendor has no control over the AffordAssist Deposit Certificate
- AffordAssist simply defers part of the deposit into an interest-free payment plan — nothing more, nothing less
For Buyers
With AffordAssist, you can secure your home with minimal upfront capital — independently of the developer.
Your home loan remains a standard bank loan, not tied to the vendor.
The difference is clear — AffordAssist’s interest-free deferred deposit solution offers a smarter path to making home ownership more achievable.
The Bottom Line
In my view, developers using vendor finance take on risk to drive volume. Those pairing with AffordAssist achieve similar — or even better — sales outcomes, with zero financial exposure.
The 2020 ALAND–AffordAssist collaboration proved it: 100% settlement success on a limited release.
After 8 years in the market — and now in New Zealand — the choice is clear: AffordAssist delivers better outcomes.
Regards
AA
#PropertyDevelopment #RealEstate #VendorFinance #AffordAssist #FirstHomeBuyer #HomeLoans #SydneyProperty #PropertySales #ALAND
Learn more:
ALAND Home Loans: https://alandhomeloans.com.au/
Why AffordAssist ≠ Vendor Finance: https://www.affordassist.com/why-affordassist-is-not-vendor-finance-or-a-loan/
Original 2020 ALAND is Now AffordAssist Approved – Post: [LinkedIn – Jan 14, 2020]
B2B – AffordAssist facilitates and oversees the governance process. Are you a mortgage broker, lender, developer, real estate agent, affordable housing advocate, or housing minister? We welcome your collaboration. Join us in our mission to expand access to home ownership. Together, we can make a lasting impact.