In an increasingly prohibitive property market, one lender has announced a special offer intended to help first home buyers (FHBs) achieve their property ambitions without sacrificing quality of life.
FHBs that apply for a Virgin Money Reward Me home loan between now and 31 May, can enjoy a two-year fixed rate of 3.68% pa on owner occupier principle and interest home loans with an LVR of up to 90%. The approved applicants will also be given a 20% discount on lenders mortgage insurance on eligible loans and their $150 settlement fee will be waived.
Virgin Money’s GM of lending, cards, and deposits Johnny Lockwood said, “We want to help as many first home buyers as possible to join the property ladder, which is why we’re offering them such an exciting offer.”
Virgin Money intends for the loan to not only help FHBs secure a home, but to maintain the lifestyle habits that might otherwise be cut in the face of taking on a mortgage. The rewards to this end accumulate for the life of the loan and help preserve luxuries like traveling and dining out.
This is partly accomplished by providing bonus frequent flyer miles through Virgin Australia. Velocity Points are awarded at settlement, upon the purchase of a home or contents insurance policy, and on a recurring basis monthly, plus 30,000 bonus points every three years.
“Buying a first home is a huge financial commitment for most Australians and can be a daunting process, especially when it’s your first time. The dedicated first home buyer section on our website offers tools, calculators and tips to help make the whole process a little easier,” said Lockwood.
The offer is well timed, as independent research from the Housing Industry Association (HIA) reveals the widespread discouragement felt by Australians looking to buy their first home.
While more than 92% of renters desire to own their own home, less than half think that it is an attainable dream. Moreover, 73% feel that only the rich will be able to afford a home in the area they want to live in just one generation.
The data also showed that many Australians associate home ownership with financial stability in retirement, and a majority fears that a failure to buy property will result in financial challenges far into the future.
“Tighter lending conditions are driving the low sentiment among first home buyers. Investment lending has fallen pretty significantly and there’s weaker sentiment on the back of that,” said Peter Vassilis, mortgage broker for Black and White Finance.
“However, in the longer view everything is going to be ok. The long-term market fundamentals such as the unemployment rate, population growth and wages growth, are pretty strong and positive,” he added.