How AffordAssist acts as enabler for first-time homebuyers? - Kalkine Media

Highlights

• Record-high inflation, both in terms of housing and other essential items, is impacting first-time homebuyers
• AffordAssist makes purchases easier, especially for first-time buyers, by allowing deferral of initial cash deposit
• The company is a comprehensive intermediary, with a repository of properties and approved lenders

Buying a house could look financially burdensome, but a right partner can make things easier. The dream of owning a house is often foremost for any family. It makes sense because instead of paying rent for an indefinite duration, the family can make virtually comparable mortgage loan payments for some years and own the house forever.

But complications related to things like mortgage and the initial deposit, also called the upfront payment, often dissuade a first-time buyer from taking the plunge. AffordAssist, an Australian housing market intermediary, acts as the facilitator and assists the buyer make the right decision at the right time. The company swears by its tagline ‘change your life’, which simply means switching from being a rent payer to being a homeowner.

Houses are costly

Australians would remember stumbling upon headlines in newspapers that talked about skyrocketing house prices in the country during the post-Covid phase. Of late, Australia’s housing sector has been tepid, both in terms of prices and sales volume. However, prices are yet to reach the pre-pandemic levels in both big and small cities. AffordAssist finetunes its services considering the shape of the country’s housing market.

Besides, the rise in interest rates on all loans including mortgage is negatively impacting the purchasing power of young and first-time buyers. Mortgage rates have risen in tandem with the raises in the official cash rate introduced by the country’s central bank in 2022. AffordAssist makes house purchases less arduous by meeting the need of initial deposit, without any levy of interest on the amount.

Information & Image source: AffordAssist website

Governance program

It could be a little daunting for a new entrant in the housing market to fully understand the complexities related to a purchase. AffordAssist’s governance process is a meticulously designed program that can benefit all stakeholders, primarily the buyer. It includes comprehensive advisory service to the buyer about the initial deposit and the options available. Other stakeholders, including the lender, benefit from the trust, which AffordAssist’s governance program injects in the deal. 

Easy purchases

The company’s proprietary Deferred Deposit Agreement (DDA) is a key highlight. It is specifically designed to meet the needs of first-time and young buyers that unreasonably delay a purchase due to incapacity to pay the initial amount. It is a common practice for lenders to seek some initial deposit before sanctioning the mortgage loan facility for the remaining amount. AffordAssist helps in payment of this preliminary cash deposit by deferring it for the buyer, with no interest levied. A big breather for those aspiring to own a house during times of raising costs.

A perfect intermediary

Home seekers can approach AffordAssist for all the assistance required to secure a mortgage facility for the house. It works with a panel of approved lenders and provides assistance through the loan sanctioning process by assuring the payment of initial cash deposit. This adds weight to the mortgage application of the intended buyer and enhances the eligibility to secure the loan, which can be up to 90% of the value of property.

Besides, AffordAssist has a repository of approved properties of all types, brand new and previously occupied. The company also provides its DDA services to investors and purchasers other than first-time buyers on a case-by-case basis.

Flexible term

The DDA can typically be for a duration of 60 months, and as stated earlier, it is available with no interest. AffordAssist also provides a customised duration after considering factors including the total loan amount, the sum deferred, and the financial health of the applicant. AffordAssist considers itself an indispensable intermediary for home buyers, especially a first-time purchaser.

AffordAssist is focused on helping its clients right from the first call to the time when clients receive keys to their new homes. To further sweeten its offerings, AffordAssist continues to add on new lenders and expand its list of approved properties across Australia.