Why Home Buyers will love the Assquire System and this Mortgage Alternative (MA)…and

Why taking a Mortgage can often be a Mistake

The table below gives renters and would be home buyers eight (8) very compelling reasons as to why they should NOT take a mortgage, notwithstanding that before Mortgage Alternative was invented, it’s the way it always HAD to be done.

Mortgage Alternative is a bridge between renting and a conventional mortgage. Instead of you taking a mortgage and buying the property with a mountain of debt and risk and upfront costs, you select the home you want and the Assquire investor buys it, with or without a mortgage, then resells and leases it to you over an extended period.

Why it’s often a mistake to take a Mortgage


Why Home Buyers will trade Higher Rents to buy Future Capital Growth rather than risk higher interest rates & settle for less Property Choice taking a Mortgage

Many home buyers will decide to pay the higher rents (similar payments to a mortgage plus property ownership costs) because they are buying future capital growth and gaining access to where they really want to live much earlier. Total payments remain competitive with the otherwise mortgage + property ownership costs for the same value property they often simply can’t access right now with a traditional mortgage, because of deposit requirements (see mortgage comparison tables here for a Queensland first home buyer and click here for a Queensland non-first home buyer).

Also because they are building an equity stake in the property in a safer way and enjoying the lifestyle benefits of an owner, without any mortgage debt or interest rate risk whilst they are in the Mortgage Alternative (MA) occupancy period.

Also because they can choose where they wish to live without being constrained by a new home and the lure of a $10,000 to $20,000 State Government Grant (depending on State & location of the property) on a narrow selection of home locations that might (for many) be either a long commute from work, or just not offer them the home choice or location choice that the Assquire system and MA does.

And  also  (in the case of first time buyers) because of the special Assquire® Grant that is paid on settlement (as a settlement adjustment) to lower their future mortgage. The Assquire® Grant is explained here.

But we think the major reason is the greater access and more choice to where they really want to live, because we’ve narrowed the deposit gap considerably between what they require up front and what they have already saved.

There’s also a maternity “ticking time bomb” in the usual credit assessment process, which Assquire reveals. See this LinkedIn post by our Founder for details.

All the above benefits and yet it costs similar to a mortgage plus property ownership costs

The mortgage comparison tables in the links above demonstrate a comparison of a Mortgage Alternative contract over a ten-year period vs the forward projected costs involved with owning a home under a standard mortgage with the usual property ownership and insurance costs (a different table will apply in each Australian State for each of first home buyers and non-first home buyers, because of the different stamp duties, first home buyer grants (or duty concessions in the case of Victoria) and assumed minimum deposit requirements in each State).

Clearly no one has a crystal ball on future mortgage interest rates with conventional mortgages over the next ten years, nor for future residential property price movements, so this is an example only, for a $500,000 home today.