Leading Mortgage Broker Reveals New Hope for Potential First Home Buyers

In a move described by one of Australia’s leading mortgage brokers as a “game changer”, first home buyers have a new way to increase their income by $650 per month, which could be the difference between home ownership or renting.

Founder of Madd Loans George Samios, who is also a multiple winner of the Finance Brokers Association of Australia ‘Finance broker of the year award’, has revealed that only days ago a major bank has changed its policy to allow first home buyers to rent out a room, and use the rental income to service the loan, while still being able to access government first home buyers grants.

Mr Samios said the bank only requires a statutory declaration stating that you’ll rent out the room for up to $150 per week.

“This move will mean that many people can rent a room to a family member or friend and purchase a home, when before they may not have met eligibility criteria,” he said.

And for others, “they will be able to borrow around $50,000 more due to the extra rental income, which can mean the difference between getting the home you want and missing out.”

He said the CBA only announced its new policy last week and he believes the competitive market will force all banks to follow.

“This is already generating a massive response,” he said.

Mr Samios pointed out that in addition, many states will still provide stamp duty concessions.

“Think about this – in some cases you now can pay zero stamp duty, access the first home buyer grant, and access up to $650 per month income towards your mortgage.

“And if you are building a new home there’s no limit on purchase price.”

Mr Samios, who is regularly invited to teach year 11 and 12 high school students about financial literacy, said despite the negative narrative, “it’s not as difficult as many claim to enter the housing market.”

“Yes it takes some sacrifice and your first home isn’t likely to be your ideal home but people should be trying to get into the market and there are many options.”