A leading non-bank lender has introduced a new home loan product tailored specifically to first home buyers.
The Liberty Swift Home Loan is available at up to 95 per cent LVR with a capped risk fee and no need for LMI.
Interest rates for the new Swift product start at 5.79 per cent.
Liberty’s national sales manager, John Mohnacheff, said the product has been designed to assist first home buyers struggling to meet recently tightened lending rules.
“We’ve seen a real tightening in credit criteria for first home buyers over the last six months which is shutting many aspiring home owners out of the market,” he said.
As more people struggle to obtain finance, Mr Mohnacheff said it was up to lenders to come up with alternative products that allow everyday Australians to have the chance to own their own home.
“Now more than ever the industry needs new options and true innovation – and that’s exactly what we’ve delivered,” he said.
In December 2013, first home buyer borrowing fell to just 10.2 per cent of the home loan market, down from 12.5 per cent 12 months previously, according to AFG’s mortgage index.
Meanwhile, the real estate industry’s peak body recently called on the government to abolish stamp duty and make life easier for first home buyers.
The Real Estate Institute of Australia sent the federal government a pre-Budget submission with 10 proposals designed to boost Australia’s economy.
One proposal was to allow first home buyers access to their superannuation for the purchase of a home.
The institute also wants the First Home Owner Grant to be set at $15,000 for all housing, both new and established. It also wants the grant to be indexed to median house price movements.