Login
ISCOVER
The collaborative concept has been launched by Deposit Power and Downsizer.com to help empty-nesters downsize to off-the-plan dwellings.
Deposit bond provider Deposit Power has announced it has co-developed a cashless deposit bond with property start-up Downsizer.com (Downsizer) that aims to help those over the age of 50 downsize.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The Deposit Power Downsizer Bond, which launched in pilot last month, enables older home owners to use their home equity as a means to exchange contracts on a new off-the-plan dwelling without having to pay a cash deposit.
In what it said to be an Australian first, eligibility is not based on a credit assessment of income and expenditure, but is instead determined by an online automated property valuations and other digital tools on Downsizer’s website.
There is no upfront cost for the bond required by the buyer.
There are currently said to be over 400 off-the-plan dwellings available for purchase with the help of a Deposit Power Downsizer Bond.
While the product is not yet available through the broker channel, it is expected that it will be launched into the third-party channel in due course.
Indeed, an engagement process has commenced via Deposit Power to have the product made available through a “small number of mortgage brokers” that work with them initially, before distribution is expanded more broadly.
Deposit Power chief executive Russell Harte commented that while the new bond (which sits alongside its current bond for off-the-plan purchases paid for by the purchaser as compared to the developer) is exclusive to Downsizer transactions, it is likely that they will be offering properties where the purchasers are likely to require finance.
”Brokers aligned with selected aggregators will be able to assist these purchasers while making use of the Deposit Power Downsizer Bond, he said.
Mr Harte added that this new product offers its customers “significant benefits to facilitate a confident transition to a new home for a new stage of life”.
Downsizer co-founder and managing director Mark Macduffie added that downsizing is an “increasingly attractive solution” for older property owners looking to “improve their income and lifestyle”.
“Deposit Power’s customer focused culture and entrepreneurial mindset, combined with their strong claims paying ability, was invaluable in rapidly co-creating this Australian market first,” Mr Macduffie said.
[Related: Deposit Power announces new CEO]
JOIN THE DISCUSSION