Well, a Victorian MP certainly thinks so.
Member for Mallee, Andrew Broad, believes that banks should forgo a first home deposit for people with a bloody good rental history.
Broad says that if a renters’ current payments are a similar price to their proposed mortgage, that should be good enough for banks to approve their loan.
“Essentially what a bank needs to do is see that a person has the capacity to service a loan.What a government needs to do is make sure a person who wants to purchase their first home can get into the property market.”
Currently, banks and financial institutions require a 20% deposit for home buyers, which Broad reckons is the thing locking young people out of the housing market.
He says he’s heard from people in his electorate that they simply cannot afford that upfront deposit for a house.
Broad has floated this proposal as a potential way to make housing affordable:
“There’s a lot of receptiveness to this.This is the space that creative governments can play in, rather than the very populist but unrealistic rhetoric of getting rid of negative gearing.I think it has serious potential.”
LET’S HOPE – WE MAY ACTUALLY BE ABLE TO BUY A HOUSE IF THAT HAPPENS.
Now, off to purchase a delicious $22 smashed avocado on sourdough toast dish. How much is a side of mushrooms? Oh, only $7? I’ll take it.
Source: ABC.
Photo: UP.
