Dear All
When most people think of a home deposit, they imagine years of saving, cutting back, and even accessing the ‘bank of Mum & Dad,’ waiting until that magic number appears in their account.
A deposit is typically understood to mean a cash payment toward a property purchase, usually 5%–10% of the total price. However, the term deposit is also used differently by lenders — who see the deposit as the borrower’s contribution toward securing a home loan.
This overlap in terminology can sometimes create confusion. For example, paying a $1,000 holding deposit on a property is a legitimate and binding step in the purchase process — yet it doesn’t mean the buyer automatically qualifies for a home loan with that amount.
But what if we could rethink if a deposit could be more — not just reliant on existing cash funds or assets?
Home Loan Basics: What Lenders Look For
Lenders have specific criteria for what qualifies as a deposit. Traditionally, it can come from:
• Cash savings
• A strong rental payment history
• A gift of funds from parents, friends, or family
• A guarantor who provides or vouches for the deposit
• Another property used as security
Each of these options plays an important role — but they all rely on existing access to cash or other assets.
AffordAssist: Rethinking the Deposit
AffordAssist offers an interest-free deposit solution that fits perfectly with both lending requirements and the property sale — a compliant, transparent framework for all stakeholders.
On the property side: Through the AffordAssist Deferred Deposit Agreement (DDA), part (or all) of your deposit can be deferred and paid over time, interest-free. This deferred amount, combined with your available savings and (where applicable) Government grants, satisfies deposit lending conditions.
On the loan side: The deferred balance is documented with the AffordAssist Deposit Certificate and works alongside existing lending requirements — not against them.
It’s not a shortcut or loophole — it’s a structured, lender-recognised solution that fits seamlessly within the loan and settlement process, empowering more Australians to move from renting to ownership sooner.
Rethink What a Deposit Could Be
AffordAssist has reimagined what a deposit could be — three insights emerge that reshape how Australians can approach home ownership:
- A deposit can be structured differently — without additional loan debt, requiring access to assets, or putting financial pressure on Mum & Dad.
- Reduce your mortgage loan amount — Less debt. Less stress. Save on interest. Build equity faster. More financial freedom.
- Deposit flexibility — supporting smoother settlements and protecting all stakeholders.
These insights are unpacked in more detail below.
Deposit Flexibility — Increase Settlement Success and Protect Stakeholders
A property valuation may result in a lower loan amount being approved, requiring the buyer to contribute a larger deposit to complete settlement. Without access to these funds, the buyer could face financial risk, and settlement could be delayed or jeopardised.
With AffordAssist, buyers have the flexibility to increase the deferred deposit balance if needed — helping make settlement possible while maintaining lender compliance. This approach also works for off-the-plan purchases, allowing payments to be structured in a way that reduces the loan amount and interest payments over time.
AffordAssist provides a practical, modern solution to manage multiple scenarios, giving buyers, lenders, and sellers greater certainty and protection throughout the transaction.
Reduce Your Mortgage Loan Amount: Pair Your Home Loan with an AffordAssist Deposit Certificate
By pairing your home loan with an AffordAssist Deposit Certificate, you could borrow up to 10% less — lowering your loan amount and potentially saving around $160,000 in interest over the life of the loan.
Imagine owning your home sooner, while paying far less in interest over the life of your loan.
It’s a practical way to reduce mortgage stress, protect your financial wellbeing, and build equity faster — creating real financial freedom.
Less debt. Less stress. More financial freedom.
Why It Matters
By rethinking what a deposit can be, you open the door to:
• Entering the market sooner — even if your cash deposit isn’t yet complete
• Meeting lender criteria with transparency and governance
• Reducing the long wait (and stress) of saving the “traditional” deposit
• Supporting smoother settlements for all parties involved
• Relief for Parents — Mum & Dad contribute comfortably, AffordAssist covers the rest
• Creating a path that’s fair, interest-free, and supported by professionals
Progress starts with a simple question:
“What if a deposit could be more — not just reliant on existing cash funds or assets?”
AffordAssist exists to make that question a reality.
Learn more about how the AffordAssist – Interest-Free Deferred Deposit Solution, a smarter alternative to cash deposits, could fit your situation. Book a call with us, – 7 days, 8am–8pm
Regards
AA
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.