‘Family Springboard,’ which will be available from Wednesday, allows a hopeful home owner to leverage the equity in the property of an immediate family member, or an immediate family member’s savings, to reach the required deposit for a loan. No cash is required upfront and the family’s exposure can be limited to the amount of the ‘springboard’ home loan.
General Manager of Retail Bank, Ian Blair, says in competitive times, Westpac is looking to provide innovative solutions to help would be home owners achieve their goal and make it as easy as possible for family to help them.
“For a number of years now many New Zealanders have been focused on building equity rather than investing. This is a way they can leverage that equity to a level they are comfortable with and help their children or grandchildren into home ownership,” Mr Blair said.
“Family Springboard means family can help without having to hand over cash or lose interest on their savings. If the value of the property purchased increases sufficiently or the springboard part of the loan is repaid, the loan could be restructured to remove liability of the family member.”
“It shapes as a good option for first home buyers in particular.”
Springboard also provides the possibility of not having to incur additional cost in obtaining registered valuations when going to auctions and saves having to pay extra interest charged for low deposit home loans.
It follows the launch earlier this week of another option Westpac provided home owners, Choices Offset. This provides customers the ability to use the balance of their eligible Westpac transaction and savings accounts to offset against their floating home loan and only pay interest on the difference.