Newspaper article News Mail Bundaberg Qld.

A Fair Go for Home Buyers; Banks to Recognise Rental History in Lieu of a Deposit

Newspaper article News Mail Bundaberg Qld.

A Fair Go for Home Buyers; Banks to Recognise Rental History in Lieu of a Deposit

Article excerpt

CRYSTAL JONES

ONLINE EDITOR

crystal.jones@news-mail.com.au

NATIONALS Member for Mallee Andrew Broad recently raised a hot topic when he suggested that rental histories could be used as proof that potential home buyers were capable of making payments on a home.

"There is growing insecurity in the job market - a job for life now seems to belong to a bygone era, while the great Australian dream of home ownership is increasingly out of the reach of our younger people," he said.

"I've been considering these things and how to develop policy that addresses them.

"It should be a concern to the whole country that hard-working, young Australians are struggling to buy their first home, as they compete with investors and house prices continue to soar."

The Victorian politician said a federal change in policy would allow people who are struggling with a deposit to get into a home of their own.

Mr Broad said an innovative approach was needed to find a solution, particularly in regional areas.

"Regional Australia can play a part in the solution but we need to ensure there are appropriate employment opportunities and community infrastructure," he said.

"During the Global Financial Crisis, Australian banks came to the Commonwealth Government with requests for us to be their guarantor.

"The (then) government supported the banks but we didn't ask enough of the banks, in return for the support we gave."

Mr Broad said a three-year rental history should be all that a bank needs to prove singles or couples are capable of paying off a home.

"In many towns, weekly house rental payments are equal to that of the cost of a 25-year purchase repayment plan," he said.

"If an individual or couple can demonstrate three years of perfect rental history, it stands to reason that it could be considered as evidence of their capacity to service loan repayments on a home at a similar rate. …

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