Lender moves to support divorced buyers

LongView has announced that it is looking to support divorced buyers who have been “locked out of the property market” due to financial separation.

According to the most recent available figures from the Australian Bureau of Statistics (ABS), 49,241 couples divorced in 2022, with a rate of 2.4 divorces for every 1,000 people aged 16 years and up.

Given the rising cost of housing and ongoing undersupply, the pressures placed on divorced individuals are being strongly felt at the moment.

Evan Thornley, CEO of LongView, said that increased house prices have made home ownership unaffordable, including for those who are able to afford repayments but don’t have a full deposit saved.

As such, the lender is moving to target divorced borrowers through its shared equity investment product, Buying Boost.

The product provides a borrower with an additional 50 per cent of their deposit if the borrower already has a deposit of $100,000.

LongView can contribute up to $300,000 to a buyer’s deposit and is available in Melbourne, Sydney, Brisbane, and the Gold Coast. In exchange for the contribution to a borrower’s deposit, LongView holds a share of future capital growth that is secured by a second mortgage against the home.

The integrated residential property business said that it aims to partner with a range of aspiring home owners, particularly, those who have “lost their financial mojo after a divorce” and can’t afford an upfront deposit.

LongView said it hopes to support buyers across Melbourne, Sydney, and Brisbane buying a property valued between $800,000 and $3 million.

Thornley said: “Buying Boost was created to help people who are ready and willing to buy a home, but through a variety of circumstances can’t come up with all the money they need.”

The CEO said that LongView uses “in-depth” data to support home buyers in finding the “most valuable and attainable properties” that would increase in value but wouldn’t create added stress by “accumulating an unmanageable mortgage”.

“With Buying Boost, home buyers don’t have to worry about paying monthly interest or extra fees, and only need to pay the money back when they sell property or anytime earlier if they wish,” Thornley said.

“We only make money if they make more money – by sharing in the profit and appreciation together.”

LongView also recently partnered with aggregator Australian Finance Group (AFG), allowing brokers to offer borrowers the Buying Boost product on some AFG Home Loans products.

The aggregator said that partnering with LongView would support first home buyers and families aiming to upgrade their homes.

Brokers operating under AFG were also provided with access to LongView’s propriety platform Home Accelerator, which gives property insights and analytics.

[Related: AFG partners with LongView]