What is Afford Assist?

The AffordAssist program offers eligible Aussie homebuyers the opportunity to avoid paying a full cash deposit upfront, making it easier to purchase a property and then repay the debt, interest-free, over an extended period.

Saving for a deposit can be incredibly difficult, particularly if you’re battling tough economic conditions, such as soaring inflation, costly real estate values and a pricey rental market. AffordAssist provides an alternative solution.

How does AffordAssist work?

AffordAssist employs a proprietary Deferred Deposit Agreement (DDA) for first home buyers, eliminating the need for a cash deposit. Deposits typically amount to 10% to 20% of the property purchase price, which can total hundreds of thousands of dollars.

The DDA may be used for all or part-of the deposit and includes a flexible repayment plan. This means, you can buy your home now, defer and pay the balance of the deposit later; typically within 60 months and always interest-free.

The length of the term can vary depending on a number of considerations, including loan amount, deferred amount, gross income of applicants, property purchase terms and other lending conditions. It is possible to have terms ranging from one year to 20 years.

Repayments are made on a monthly basis and buyers retain 100% ownership in the property title.

It’s possible to choose any deposit amount, as long as it is agreed upon between the seller and buyer and all lending criteria are met. AffordAssist’s governance process includes a program solicitor that will advise you about the deposit payment.

Those that are approved for the program can also take advantage of any eligible government assistance schemes, such as the First Home Owner Grant (FHOG) and other support initiatives.  

AffordAssist was designed to aid first homebuyers. However, the program may be used by owner occupiers and investors on a case-by-case basis. You’ll need to contact AffordAssist for further details.

Who’s eligible to receive AffordAssist?

In order to be able to receive help with your deposit you’ll need to meet some specific financial requirements. Your eligibility to secure a loan is based on an applicant’s annual income. This includes your partner’s income if applicable.

Once you’ve provided your financial information and filled out the pre-qualification and fast-track readiness forms, AffordAssist will determine whether you are eligible for the program.

You’ll be guided to cooperate with AffordAssist service professionals who understand the process to ensure your successful property purchase. These may include lenders, mortgage brokers, developers, property consultants, agents and the AffordAssist program governance solicitor.

Approved lenders, brokers and properties for sale

AffordAssist has a list of approved lenders and mortgage brokers that assess eligibility and maximum property budgets for home loan applications. All assessments must adhere to the lenders’ duty of care.

Approved lenders and brokers can offer loans of up to 90% of the property value, further reducing deposit requirements.

AffordAssist also offers a list of approved properties for sale. The program continually procures new lenders and regularly expands its list of approved properties across Australia.

The program is designed to incorporate all types of residential properties, including off the plan, brand-new or previously lived-in. The fee for this inventory service is generally paid by the property seller.

You can source your preferred property separately but if you select a home that’s not on AffordAssist’s list, you’ll need to pay a service fee of $2,000 + GST. You can also engage an approved buyer’s agent, although you’ll be charged a prepaid flat fee of $9,000 + GST.

Advantages of the AffordAssist program

There are a slew of different benefits available to first homebuyers that utilise the program. These can include:

• Interest-free deposit: You won’t have to worry about paying more than the cost of the deposit, regardless of the repayment term.
• 100% property ownership: You won’t have to sacrifice any of the equity in your home when making your property purchase.
• Improved purchase capacity: You’ll have the flexibility to purchase the property you really want without needing to save the full deposit amount.
• Reduced LMI premiums: AffordAssist offers interest-free repayments, therefore increasing the DDA amount will reduce the loan-to-value (LVR) and your lender’s mortgage insurance (LMI) premium.
• LMI avoidance: Applicants with a large deposit, say 10% to 15%, may benefit from a DDA to reduce the loan to below 80%, removing the need for LMI altogether.

AffordAssist for sellers

The program also offers developers & real estate agents and private sellers the opportunity to list eligible properties on the program’s approved residential homes database.

There is a listing service fee of $1,000 + GST. This includes a dedicated web page with a unique URL and full property description plus images; no ads; a post placed on AffordAssist’s Facebook page; and the option to boost this post for $10 per day.

If you need further assistance with your listing, such as sales and management obligations, you can request additional support from AffordAssist’s team, however, there may be extra fees involved.

How to apply for AffordAssist

You’ll need to provide the relevant financial information of all applicants and fill out two digital forms (a pre-qualification form and fast-track readiness form) as part of the application process.

Once completed, a customer care representative will give you a call to assist with finalising your application.

Want to learn more about AffordAssist? You might consider attending the next free information session.

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