Yellow Brick Road continues to target the business of the big four banks with the launch of a home loan option that does not require borrowers to demonstrate a savings history provided they have an adequate deposit and can demonstrate a regular income.
Through the First Step home loan option, rather than having to save a deposit borrowers can use a deposit that came as a gift, windfall, inheritance or tax return, which will help first homebuyers get into the market more quickly, according to Yellow Brick Road chairman and co-founder Mark Bouris.
Income and credit history are better indicators of a first homebuyer’s ability to make mortgage repayments than a long-term savings plan, according to Bouris.
“First homebuyers are being squeezed out of the market by the big banks, which are simply not providing adequate funding for them,” Bouris said.
“This policy by the banks of insisting on a savings record benefits the banks’ profits by boosting their deposit base. It does nothing to help first-time buyers.”
Yellow Brick Road said the First Step initiative was made possible by the company’s partnership with Gateway Credit Union.
Yellow Brick Road is in the midst of an expansion phase that has seen it grow from 27 Australian branches in May to 34 in August, targeting 50 by the end of this year. Bouris has previously told the growth strategy is built around accounting and mortgage broking, with financial planning at its core.
