Who runs the world? Girls!
An interesting property market trend is on the way… Welcome single, female first home buyers!
Statistics show Gen Y females are the fastest growing group of mortgagors, taking out almost one quarter of mortgages in Australia in 2015. In fact, almost twice as many single women are buying homes as single men.
Why are women doing it alone?
Over the last 30 years, the discrimination suffered by single women when applying for home loans have diminished. Nowadays it is financial merit, not gender that underpins the qualification for a home loan. There has also been sizable growth in participation rates of women in the workforce. Social change being the key driver for young women to seek their own financial independence – many no longer see a need to wait for the right guy to come along! Women now consider purchasing property as part of their life plan.
What do you need to know?
Setting aside the gender of an applicant, there are important points to consider when purchasing property on a single income. FIRST on your list should be talking to us – your finance specialist.
The initial challenge in all situations is determining how you will save a deposit and manage repayments on a single income. There is still an average pay gap between women and men in equivalent full time roles. If possible, aim to save a minimum 20% deposit to avoid lenders mortgage insurance (LMI) plus extra for stamp duty, legal fees, moving costs etc.
Other important considerations
– Know your credit score
– Know your borrowing capacity
– Check your eligibility for government grants
A few things we can assist with:
– Arranging a pre-approval of your loan, this will assist you to act quickly and stick to your initial budget
– Explore loan features that are suitable for your individual circumstances
– Explore options such as family guarantee or gifted deposits – this can save thousands in LMI costs
First home buyers are constantly in the news at present, hence the growing pressure for our government to do more to help them get into property. See our First home buyer benefits blog for more information regarding these incentives and check your eligibility.
As your finance specialist it is our job to keep up to date with the latest finance market changes, so give us a call today!
Information sourced from:
employment.gov.au
wgea.gov.au/genderpaygapstatistics