The smarter way to buy your first or next home
Not enough savings or equity to get a mortgage or trade up to your next home?
Mortgage Alternative can help you get on or up the property ladder with no debt, for a lower deposit and without mortgage insurance up front.
If you’ve started saving for a deposit for your first or next home, you know just how long it can take! But what if you could purchase your new home now, with as little as 4.5% up front including stamp duty and still avoid mortgage insurance?
With Mortgage Alternative, you can!
Mortgage Alternative, or ‘MA’ to us, is a safer, smarter way to buy a home. You buy your home with a contract of sale now, at a pre-agreed fixed price that you lock in today, but with a delayed settlement of up to ten years.
You can occupy the home immediately following the exchange of contracts. During the settlement period, you make monthly payments which cover your deposit instalments, rent, rates, agreed property maintenance and building insurance. Most importantly it includes a contribution to a savings account in your name to build equity. Excluding the savings component, the monthly payment is similiar to a mortgage repayment plus property ownership costs.
The key to MA is that the deferred settlement gives you time to build equity in the property and savings, which should enable you to avoid mortgage insurance when you eventually settle on the property, most likely with a conventional mortgage.
What’s more, if you’re a first home buyer, you can enjoy a grant of up to $55,000, embedded into a reduced purchase price on settlement – and it’s available on both new and existing homes.
Halving deposits for owner occupier home buyers is what we do – view here for a LinkedIn post on the subject.
Who are the sellers?
Known as Assquire investors, these pre-approved sellers are specifically looking to sell their properties to MA buyers, as they are wishing to sell and lease their properties within a ten year period, to reap the benefits sooner. Their properties include new and established properties, as well as ‘off the plan’ homes from builders.
Assquire investors have a minimum 25% equity in their properties to safeguard and incubate credit worthy home buyers into their new or established home sooner. The one exception is parents or grandparents using Assquire Family, where the minimum equity required of the Assquire investor parent is 20%. Home buyer adult children only require a minimum of: 4.5% savings (exact amount varies from State to State).
If you are interested in Assquire Family, go to the link above or look at this Linked In post, where we talk about people getting into their homes in their 20’s and 30’s, instead of in their 30’s and 40’s.
The smarter, safer way to home ownership
Buyers require just 4.5 - 5% up front
This includes any stamp duty. There’s also no mortgage insurance to pay up front, as a mortgage isn’t required until settlement in up to ten years’ time
Straight forward qualifying criteriaSimilar to a mortgage, buyers will be credit-checked against strict criteria and will need to earn an above average salary. MA is available only to owner occupiers
First home buyers' grantMA provides first home buyers with a grant of up to $55,000 embedded into a reduced purchase price on settlement – and can be used for new and existing properties
Pre-approved properties available
You can find your own property to purchase or you can search pre-approved new and established homes on our property listing website www.BuyOrInvest.com.au.
We also have builders with new properties available both off the plan and as completed stock ready for you to move in
Move in on the exchange of contracts
Move into your home today while you pay your full deposit progressively, so that you can settle with a conventional mortgage at settlement (a time of your choosing) within ten years
Monthly paymentsYour payments cover deposit instalments, rent, rates, agreed maintenance and building insurance plus a contribution to a savings account in your name to build equity and ideally avoid mortgage insurance on settlement
Superior property maintenanceDuring the settlement period, you’ll lease the property from the seller, meaning the seller will be responsible for all maintenance – efficiently and quickly!
Settle any time within 10 years
Get a promotion or inheritance and want to settle earlier than ten years? Absolutely! Likewise, if life changes for the worst, you can exit the contract under pre-agreed conditions without having to endure a ‘fire sale’