News Articles & Media Releases

29/05/10
A guarantor loan can help first-time buyers
Writer: Maya Anderson
Publication: The New Homes Guide - The West Australian

With rising property prices, it is becoming increasingly difficult for young Australians to enter the property market. Many Generation Ys are choosing to live at home until they have a deposit saved.

According to Jared Stone, sales and marketing manager of Homebuyers Centre, a guarantor loan could be a great way for young people to get into the housing market with parents assisting their kids with their dream of home ownership which might not otherwise be possible or easily affordable.

“Obtaining finance for your first home is still the biggest hurdle for first-homebuyers,” he said.

The company aimed at assisting first-homebuyers with little or no savings to obtain finance, locate the best available block to build on and choose a house design to suit individual needs, budget and lifestyle, he said.

Jenna Roche, 21, a client services manager, is one of Homebuyers Centre’s first-home builders, having recently finished construction of her home in Piara Waters. She had dreamed of home ownership for years.

“I love spending my weekends going through display homes and comparing designs so I always knew I wanted to be a home owner,” she said.

“When I decided to build, it seemed like the right time to get into the market as prices were only going to get higher.
“I also wanted to build as I was eligible for the $21,000 home owner’s grant.”

Ms Roche lived with her parents in Winthrop while she studied and saved for a deposit.

“I had a small deposit saved from my many casual jobs I held before I finished university and started work full-time,” she said.

“Homebuyers Centre had some great designs that proved terrific value for money so I decided to go through them. I chose the St Marks design as I liked its feature render and layout. It had everything I wanted and we extended the family room to provide a huge living area that has become the feature of the house.”

Ms Roche opted for a CBA variable interest home loan arranged through Resolve Financial Solutions and enlisted both parents as guarantors.

“I chose to use a guarantor loan as Resolve (Financial Solutions) advised it would make it would make my approval easier and it would also save me money,” she said.

Being a student was no hindrance when it came to financing the loan.

“All the staff at Homebuyers Centre were great to deal with and understood that, though I was a student, I was capable of meeting the requirements of a mortgage,” she said.

“As I was a first-time builder, I had endless questions and queries.

“Everyone I dealt with was more than happy to work around my schedule and their attention to detail ensured I ended up with a great result.

“There were no unexpected costs and I was informed about what was happening every week.”