Dear All,
There’s a lot of talk about getting in — grants, shared equity, low-deposit loans, guarantees, higher-LVR lending, help from mum and dad, no LMI fees, and other incentives.
But almost no one is talking about the other side: the exit. And without that lens, some solutions may cause more harm than good.
The real question is:
- How easily can a buyer get out?
- How cleanly can they exit, refinance, restructure, manage risks, and understand their net equity position after five years?
If the industry doesn’t ask these questions, we risk celebrating solutions that create new crises later.
When Entry Looks Appealing — Beware the Exit
Many of today’s well-intended pathways to home ownership focus almost entirely on access — not outcomes.
Some structures, especially those tied to interest-bearing deposits or shared-equity arrangements, can unintentionally:
- dilute future equity
- increase the cost of refinancing
- trap buyers in higher debt
- create exit penalties
- reduce financial flexibility just when life requires it most
The industry must expand how it measures affordability.
Entry alone is not the metric.
A solution isn’t truly good or affordable if the exit is expensive, uncertain, or damaging.
The Five-Year Test — Example
This example focuses on how payments build equity, excluding potential market growth:
a) A home loan without AffordAssist
Much of the borrower’s payments go toward interest rather than reducing principal, limiting equity growth and leaving the buyer with less flexibility over time.
b) A home loan paired with AffordAssist
- Lower LVR debt and faster equity growth through a flexible Deposit Certificate.
- Payments primarily reduce principal, preserving equity and lowering the overall loan balance faster.
- Reducing the loan amount by 10% (~$80,000), paid over 60 months, creates a minimum 10% equity after five years.
Over five years, using AffordAssist can result in:
- a smoother refinance — thanks to the interest-free payments toward the deferred amount
- a lower mortgage balance
- reduced risk of negative equity
- more financial options when life changes
With no interest drag, more equity remains with the buyer, strengthening both their exit and future financial options.
AffordAssist’s Interest-Free Deferred Deposit — Designed with Exit in Mind: A Smarter Equity Solution
AffordAssist approaches affordability differently.
Instead of asking buyers to borrow their deposit, take on shared equity, or make higher interest payments, AffordAssist provides a Deferred Deposit that is:
- 0% interest
- No compounding
- No shared equity
- Monthly payments typically spread over 60 months
- Payable later — only the original amount
A sustainable solution must protect:
- equity
- borrowing power
- refinance flexibility
- long-term financial health
This is where AffordAssist’s Interest-Free Deferred Deposit Solution stands apart:
It offers entry — and a stronger, cleaner equity exit.
This means the buyer enters the market sooner while protecting their future exit position.
An Entry Path That Strengthens the Exit
Life happens.
People change jobs. Interest rates rise and fall. Medical emergencies occur. Families evolve. Separations happen. Markets shift.
A truly affordable model gives the buyer the ability not just to get in — but to get out safely, cleanly, and on their own terms.
AffordAssist was specifically built with two governance objectives:
capacity to settle and the exit.
Buyers can restructure, manage risks, refinance when ready, repay the Deferred Deposit in a lump sum, and retain 100% of their equity growth without penalties or ongoing interest working against them.
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.
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