Family Springboard

Jump start? With a Family Springboard home loan, your family could help get you into your own home sooner.

Remember when you were little and couldn’t quite reach something? More often than not, your family were there to help you up.

Nowadays, you’re probably big enough to reach most things yourself, but when it comes to buying your first home, saving a deposit can feel like a real stretch. And with rising house prices, the target just keeps moving! But with our Family Springboard Home Loan options, your family could help you get into your new home sooner.

It's for you if:

  • You're buying your first home to live in
  • You’ve got a little or no deposit
  • Your family want to help you into your first home
Family Home

If you’ve got a little or no deposit, your family could use their home to get you there sooner.

Let’s say you’ve got $20,000 saved up towards your deposit and you’ve just found a great first home for $400,000.  Your family want to help out but would prefer not to give you cash upfront. 

With the Springboard Family Home option, they need to agree to let you springboard off the equity in their home to help you get into yours.

 How does it work?

You have two separate loans – your standard home loan as well as a Springboard home loan that you share with your family members as joint borrowers. 

For example:

Springboard image 2015

This way, you can get the home you want and your family can give you a helping hand, without needing to give you a large amount in cash upfront. 

 Highlights for you

  • Getting a little boost from your family could help you get in to your new home sooner.
  • You could save on having to pay extra interest charged for low deposit home loans - both secured properties must have 20% equity*.
  • Your family members are only responsible for ensuring the Springboard Home Loan is repaid (either by you or by them).  They have no liability attached to the rest of your home loan. 

Highlights for your family

  • They can help without having to provide a lump sum of spare cash upfront or lose interest earnings on their savings.
  • Their responsibility and liability is limited to the amount of the Springboard home loan. They would only ever be called on to make payments if your payments aren’t made on the Springboard Home Loan.
  • Once you repay the Springboard Home Loan, your family’s liability comes to an end and the security over their property is released. 

Important things to note

  • Both you and your family member(s) must provide information about your income and any current debts, and meet the standard home loan lending criteria, as you both are responsible for repaying the Springboard Home Loan.
  • Your deposit (if any) plus the Springboard Home Loan must add up to at least 20% of the value of your new home.
  • You must be able to repay both your own home loan as well as the Springboard Home Loan.
  • Your property must be owner-occupied (i.e. you must live in your new home).
  • All lending against your own and any property used for the Springboard Home Loan must solely be with Westpac.
  • You and your family member(s) will be jointly responsible for all decisions affecting the Springboard Home Loan (i.e. choosing interest rates etc.).
  • We recommend you and your family member(s) each seek independent legal advice when considering this option. 

Getting started

To get the ball rolling, apply online and our team of home loan specialists will contact you to discuss how a Springboard Home Loan could work for you. 

Other options

There are many ways we can help you get into your new home sooner.

You could use your family’s savings with our Springboard Family Savings or gifting options. Welcome Home Loans might also be a great choice for you. Click here for more details on the different options. 

 

Family savings

If your family member wants to help you into your new home and has some savings, but doesn’t want to (or isn’t able to) give you cash then this may be a great option.

Family Saving is a bit like the Family Home option but instead of the Springboard Home Loan being secured by your family member(s) home, we hold some of their cash in a Westpac Term Deposit and this is used as the security.

With this option, your family member will need to leave the funds in the Westpac Term Deposit account until the Springboard home loan is repaid. This means that they can keep earning interest on these savings and don’t have to have the lending secured against their home. 

How does it work?

Let’s say you’ve got $20,000 saved up towards your deposit and you’ve just found a great first home for $400,000.  Your family want to help out.

Like the Family Home option, you have two separate loans – your standard home loan as well as a Springboard Home Loan that you share with your family member(s) as joint borrowers. 

For example: 

Springboard image copy 4

This way, you can get the home you want and your family can give you a helping hand, without needing to give you cash upfront. 

 Highlights for you

  • Getting a little boost from your family could help you get in to your new home sooner.
  • You can save on having to pay extra interest charged for low deposit home loans.
  • Your family members are only responsible for ensuring the Springboard Home Loan is repaid (either by you or by them).  They have no liability attached to the rest of your home loan. 

 Highlights for your family

  • They can help without having to give you money for a cash deposit upfront or lose interest earnings on those savings.
  • Its great option if they have cash available to act as security and don’t want to secure the lending against their own home.
  • Their responsibility and liability is limited to the amount of the Springboard Home Loan. They would only ever be called on to make payments if your payments aren’t made on the Springboard Home Loan.
  • Once you repay the Springboard Home Loan, your family’s liability comes to an end and the security over their savings is released. 

 Important things to note

  • Both you and your family member(s) must provide information about your income and any current debts, and meet the standard home loan lending criteria, as you will both be responsible for repaying the Springboard Home Loan
  • Your deposit (if any) plus the Springboard Home Loan must add up to at least 20% of the value of your new home.
  • You must be able to repay both your own home loan as well as the Springboard Home Loan.
  • Your property must be owner-occupied (i.e. you must live in your new home).
  • All lending against your own home and the Term Deposit used as security for the Springboard Home Loan must solely be with Westpac.
  • You and your family member(s) will be jointly responsible for all decisions affecting the Springboard home loan (i.e. choosing interest rates etc.).
  • We recommend you and your family member(s) each seek independent legal advice when considering this option.
  • Your family member(s) will not be able to access their Term Deposit funds that secure the Springboard Home Loan until the loan is repaid in full. 

Getting started

To get the ball rolling, apply online and our team of home loan specialists will contact you to discuss how a Springboard home loan could work for you.

Other options

There’s many ways we can help you get into your new home sooner.

With options like our Springboard Family Home option, gifting or Welcome Home Loans, we can help you find the right choice for you. Click here for more details on the different options.