Franchise head backs calls to open up super to first home buyers

by Julia Corderoy02 Sep 2015
The head of major mortgage franchise, Mortgage Choice has backed recommendations to allow first home buyers to access their superannuation to purchase property.

Chief executive John Flavell says any measures to address housing affordability and home ownership should be applauded.

“At Mortgage Choice, we agree that first home buyers should be able to access their super in order to fund their first home purchase. 

“The reality is, it is becoming harder for first home buyers to purchase property, especially in some of the capital cities where property values are rising at a significant rate. As such, any measures that seek to help first home buyers get their foot onto the property ladder sooner rather than later should be applauded.”

Flavell’s comments come after a new economic report published by the Committee for Economic Development of Australia (CEDA) argues that allowing first home buyers to access their superannuation to purchase owner-occupied housing will ease the impact of sustained housing affordability issues which are a significant issue for retirement policy.

“We have long supported the idea of allowing first home buyers to use their super as a way to fund their first home purchase. Super helps Australians get financially ready for retirement, so why shouldn't we allow first home buyers to use their super to buy an asset that will make them money and ultimately help them in retirement? 

“Older Australians are allowed to use their super to invest in property, so shouldn't younger Australians, particularly first home buyers be able to do the same?

“Furthermore, first home buyers, particularly those trying to buy in the metro areas often don't qualify for other assistance or government help when buying property. As such, they have to do it on their own. If they are able to access their super, which is their money anyway, they would be able to raise a deposit faster and get onto the property ladder sooner.”


  • by Prisco Minichiello 2/09/2015 8:41:29 AM

    Seems a silly thing to do, putting all the eggs in the housing market basket. what if we have a housing collapse, Ah well back to eating baked beans and dog food for future retirees

  • by Paul 2/09/2015 8:46:15 AM

    To enable buyers to access super will only increase the problems in the market.
    Better would be the removal of stamp duty, and regional LVR restrictions on Syd and Melbourne investor purchases rather than blanket national restrictions as imposed by APRA. Using super will only causes prices to be bidded up further as seen when the FHOG was increased. Comparisons to the SMSF regime for property and lending are distorted. SMSF property purchases come with numerous restrictions. Also we have yet to see what happens when many of those purchasers reach drawdown stage. Many believe this is a timebomb in the making.

  • by shawn 2/09/2015 8:47:31 AM

    So who's going to fund their retirement? Oh yeh the tax payer. There are plenty of affordable houses within 20kS of the city with good infrastructure, under $500K. Young people want it all and don't save but spend their money going overseas or on flash cars. It's a rediculous notion to allow young people to have acces to their super.