Life can be tough as a single parent, especially when it comes to buying your own home.
The good news? There’s a clear route to securing a single parent home loan if you follow the shared equity pathway.
Here are six tips to set you up for success.
1. Compare HAS with the Family Home Guarantee
You may be familiar with the Australian Government’s Family Home Guarantee program. You may not know, however, why Home Affordability Solutions (HAS) knocks it out of the park.
- You don’t have to be a first home buyer.
- Requires an exceptionally low deposit, no genuine savings are needed.
- 17.5% shared equity facility.
- Interest only at a 3.25% fixed rate for five years. The first three years of re-payments are funded.
- There’s no means testing.
- You alone are on the title, rather than the government being on the title as part-owner of the property.
Our single parent home loan is a great way to access and climb the property ladder
2. Discover shared equity, with a 2.5% loan deposit
Yes, 2.5% is low! Yet this is all it takes to kick off your home buying journey.
Buying a home as a single mum or dad has traditionally been a hard slog. For many, it seems to be an impossible dream.
It’s infuriating. You know you earn enough to service a loan and have a good rent repayment record. But how do you save for that standard 20% deposit, when you have to pay the household bills on your own?
HAS is the answer. Our shared equity loans offer single parents a low deposit and lower monthly repayments.
-Deposit. Forget the 20% deposit and 80% mortgage. With HAS shared equity, you put forward a 2.5% microdeposit. We put in 17.5%, providing the full 20% deposit without costly LMI!
-Repayments. Pay 3.25% fixed interest on the shared equity part of your loan, for a full five years, before full ownership payments start. Plus, the first three years of monthly payments for the shared equity facility (17.5%) are fully funded. This means you only pay the 80% mortgage for the first three years.
-Versatility. You have the option to boost the HAS shared equity portion to 37.5%, making your loan easier to service.
Shared equity offers outstanding value to Australian home buyers seeking a single parent home loan.
3. Explore grants for first time home buyer, single mum or dad
If you are a first time home buyer single mum or dad, you may be eligible for the Australian Government’s national scheme.
The First Home Owner Grant (FHOG) program offers a one-off grant to first home buyers who meet the eligibility requirements.
You can use this grant, or other stamp duty concessions you may be eligible for, to contribute to your HAS 2.5% micro deposit.
4. Understand your borrowing limits
It’s important to understand your borrowing capacity and be realistic about what’s possible.
The last thing you want is more stress in your life! By setting achievable goals, and having a clear understanding of your financial limits, you give yourself the best possible chance of success.
It will help you secure a serviceable at really works for you.
5. Organise your finances
Spend some time getting your finances in order before you make your application.
This will help determine your serviceability, ensuring you don’t overstretch yourself.
Factor in income and outgoings, draw up a detailed budget and get a real handle on your financial situation.
Remember, you can set up automated transfers of regular savings to help you meet your home loan repayments.
6. Test your HAS eligibility
Why not test your eligibility for our low deposit home loans? Australia is seeing increased interest in shared equity home loans, so be sure you don’t miss out.
It’s the new way to build stability and secure the future, both for you and your family.