Westpac extends partnership with housing deposit not-for-profit

Westpac has signed a new agreement with Head Start Homes, extending its partnership for another two years.

The big four bank became the founding partner of Head Start Homes in 2018 and has helped around 50 beneficiaries, including four families who have now become home owners.

Head Start Homes acts as a guarantor for people living in community housing who can afford a home loan but might not be able to secure the deposit or fund lender’s mortgage insurance (LMI).

The group also provides access to budgeting tools, assistance and a savings plan.

Through the partnership, Westpac has developed a Head Start Pledge offering, a low-interest home loan for eligible customers, who still meet the bank’s normal criteria but might have needed assistance with upfront costs, such as the deposit, LMI or stamp duty.

Head Start Homes founder and managing director Stephen Woodlands commented that while 10 per cent of community housing tenants may meet the organisation’s eligibility criteria for home ownership, many face structural barriers to entering the market.

“Having grown up in social housing, I witnessed the negative impacts these additional barriers have on home ownership aspirations,” Mr Woodlands said.

“My mum worked really hard as a nurse and social worker, however, the more she earned the more rent she had to pay, making it impossible to save enough for a deposit and get ahead.”

He added that the efforts have also helped free up community housing for families on waitlists.

Around 100 Westpac employees have volunteered their time to support Head Start Homes.

Anthony Hughes, managing director of mortgages at Westpac commented home ownership creates financial security and provides a sense of physical and emotional safety.

“But we know entering the market can be really challenging for some people,” he said.

“Through this partnership we’re really proud we’re able to help make the great Australian dream a reality for those who might’ve thought buying a home was out of their reach, and we look forward to being able to build on this further in the coming years.”

A recent report from the Real Estate Institute of Australia (REIA) showed housing affordability is at its lowest since June 2012, with households nationwide needing to use 37 per cent of their median weekly income to meet mortgage repayments.

[Related: Rising house prices widen gender wealth gap: CoreLogic]