Savings history is history

There’s a new home loan product in the market that caters for people locked out of the property market because they can’t prove their savings history.

yellow_brick_road The Yellow Brick Road’s First Step home loan option does not ask the borrower to demonstrate a savings history with a bank or any other financial institution.

Instead, deposits for a First Step option can come from gifts from a parent or other family member, an inheritance, windfall gains and tax returns.

In other words, the buyer’s deposit is not a factor to get a home loan application approved.

This departs from normal rules where the lender, usually a bank, demands a borrower prove their deposit comes from a savings plan.

“I don’t believe this is an indicator of their ability to make their mortgage payments. More important factors are their income and their credit history; not the origin of their deposit,” said Yellow Brick Road’s founder Mark Bouris (and former chair of Wizard Home Loans).

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