According to The Australian Financial Review, from interest-free loans to guaranteed valuation at settlement and even free rent of up to six months, residential developers are going all out to reel in first home buyers amid a backlog of unsold stock and weaker-than-expected investor demand.
Sydney-based developer Eastern Pacific has started offering interest-free loans with loan matcher AffordAssist to top up the deposit of buyers who have the borrowing capacity but not enough savings to get a loan.
"We developed a proprietary agreement called a deferred deposit agreement," said AffordAssist founder Anthony Aoun. "Together with the buyer’s cash deposit of $10,000 or more, it becomes the deposit needed for the purchase of the property."
Mortgage-approved buyers will pay back the shortfall to Eastern Pacific over a period of up to four years, without interest.
"Rather than saving the usual minimum $55,000-$65,000 deposit needed to meet a 10 per cent deposit requirement, first-home buyers can buy now with just $10,000 if they qualify for a loan," said Eastern Pacific director Chris Abouhamad.
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