The delivery of housing ownership to families with low income or specialist needs centres around the availability of enough funds for the deposit.
The standard adopted, regarding housing stress, is that if you are spending more than 30% of your household income on accommodation costs and your income is in the bottom 40 percentile of the median then you are in housing stress. Many low-income earners are in this situation and some are paying up to 50% of the household income on accommodation.
This very fact then precludes them from the ability to save the significant deposit required to buy a home. Most lending institutions will not accept less than 20% deposit from people in this space as their capacity to repay on lesser deposits comes into question.
P4C addresses this issue in conjunction with Community Sector Banking and other organisations. With our Deposit Assistance Scheme we effectively provide 50% of the deposit interest free , supported by a second mortgage, behind the bank and hold a Deed of Priority . The client can use first home owner funds and their savings to make up the other 50%. The bank carries out their due diligence regarding capacity to pay and saving history and if successful we enter a tripartite agreement between the parties.
When the property value has risen sufficiently the bank re-values the property and restructures the loan and the capital gain on the property is used to pay out P4C.
The client is then up and away as a home owner in society.
Throughout this period and after P4C offers further support to our clients through our community programs.