National Australia Bank analysis shows first home buyers are increasingly turning to their families for help to achieve their home ownership dreams.
NAB’s research has found that 6.7 per cent of first home buyers are now using the NAB Family Guarantee to get a foot in the property market – up from 4.8 per cent in 2010.
Customers in the Northern Territory and Tasmania accessed the NAB Family Guarantee the most, with 14.3 per cent and 12.1 per cent respectively of first home buyers taking up the offer in 2015.
The NAB Family Guarantee allows customers to use money, placed in a term deposit account, to support a fellow family member to enter Australia’s highly competitive property market.
NAB Executive General Manager Consumer Lending, Angus Gilfillan, said the NAB Family Guarantee gave savers access to a home loan earlier than they would otherwise, while allowing their family members to earn interest in a term deposit on the money they provided as security.
“Our figures show this product is increasing in popularity because it allows parents to gain from their support for their child’s home loan,” he said.
“The NAB Family Guarantee also provides flexibility so that customers could opt to use equity in their property as security if they don’t have access to cash in the form of a term deposit.
“This is another example of NAB putting the customer first and finding innovative ways to meet their various needs.”
Mr Gilfillan said the bulk of customers using the NAB Family Guarantee in the 2015 financial year were aged 20-29- (73%), but there was also a large portion aged 30-39 (21%).
“Our data shows some customers are in their 30s or 40s when they buy their first home, while at the other end of the spectrum we have also seen three per cent of first home buyers using the NAB Family Guarantee this year in their teens,” he said.
“This is another sign that our customers’ needs are changing and we need to continue providing innovative solutions such as the NAB Family Guarantee to help them achieve their goals.”
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