Bendigo and Adelaide Bank wholesale manager Jamie McPhee said yesterday that shared equity home loans and similar products will be “mainstream” within five years. Adelaide Bank was the first bank in Australia to offer shared equity loans, targeted to first home buyers.
Their loan product, developed with U.S. partner Rismark International, allows home owners to borrow 75 per cent of the value of their home after putting up a 5 per cent deposit. The other 20 per cent would be covered by what is called an equity finance mortgage.
Managing director Rob Chapman added that products allowing parents and grandparents to put their superannuation or other money into homes for their children are a future possibility.
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