OwnHome: Making the Aussie Dream of Homeownership a Reality
The dream of owning a home in Australia has grown increasingly out of reach for many, especially in high-cost cities like Sydney where property prices can soar to staggering heights. But what if there was a way to bypass the traditional 20% deposit hurdle? Meet OwnHome—an innovative Australian company reshaping the way people achieve homeownership.
With its low-deposit home loans and rent-to-buy model, OwnHome is empowering Australians to enter the property market sooner. Whether you’re a first-time buyer or simply struggling to save for a deposit, OwnHome offers personalised solutions to suit your needs.
The OwnHome Story
OwnHome was co-founded by Sydney locals James Bowe and Tim Harley. Their motivation stemmed from reflecting on some of life’s biggest challenges, including financial security, and how they could spend their time creating meaningful change.
The dynamic duo got their start by participating in Commonwealth Bank’s accelerator program while juggling full-time jobs in the UK, working their day jobs by day and their accelerator tasks from 10 pm to 4 am. Their hard work paid off, finishing first in the accelerator program and securing $150,000 in funding. They soon returned to Australia, raised their seed funding while in hotel quarantine, and launched OwnHome in 2021.
Today, OwnHome has received backing from investors like Global Founders Capital, Entrez, Square Peg, and Commonwealth Bank’s X15 Ventures. They raised $31 million in their Series A funding round, signalling strong confidence in their innovative approach to tackling housing affordability.
The Mission of OwnHome
OwnHome’s mission is clear—make homeownership accessible to more Australians. With the rising costs of property, many Australians find themselves stuck in a cycle of renting, unable to save the sizeable deposits required by traditional lenders. This phenomenon, often called “generation rent,” is what OwnHome aims to disrupt.
- Goal: Enable Australians to achieve homeownership, regardless of whether they have family financial support.
- Impact: Homeownership is a key driver of financial security. Homeowners at retirement have, on average, 13-20 times more wealth than renters. OwnHome bridges this gap, helping people transition from renters to proud home buyers.
Why Choose OwnHome
Flexible Loan Options
OwnHome offers loans specifically designed to lower the barriers to homeownership.
- Deposit Boost Loans: These flexible loans allow borrowers to secure a home with up to 100% Loan-to-Value Ratio (LVR), meaning you can purchase a property with 0% to 10% deposit.
- Low Deposit Premium (LDP): A one-time fee of up to 2.2% of the home’s value. Discounts are available for deposits of 5% or more, making it even more affordable.
- No Early Exit Fees: Borrowers have the flexibility to refinance the loan at any time within the 15-year loan term.
Additional Services to Simplify the Process
OwnHome simplifies homebuying with added perks designed to guide you through every step of the process.
Complimentary Buyer’s Agent:
- Property hunting
- Valuations
- Auctions
- Negotiations
Savings Guarantee:
Borrowers pay less upfront compared to traditional Lender’s Mortgage Insurance (LMI). OwnHome promises to beat any comparable LMI offer by $1,000.
Eligibility:
- A credit score of at least 600
- Must be an Australian citizen or permanent resident
- Loans applicable only for owner-occupied or first-investment properties
Finsure Partnership Expands Opportunities for Brokers and Buyers
Finsure Group, a leading aggregator, has partnered with deposit lender OwnHome to provide brokers with greater opportunities to support home buyers while earning commissions without clawbacks. This marks OwnHome’s first aggregator partnership, enabling Finsure brokers to offer loans with up to 100% loan-to-value ratio (LVR). The collaboration allows brokers to earn commissions on both OwnHome’s deposit loans and the paired 80% home loans, nearly doubling their compensation for settled loans. OwnHome’s second mortgage solution is particularly designed to assist first-time buyers in entering the property market.
Tackling Market Challenges
Overcoming the Deposit Hurdle
One of the largest barriers to homeownership is saving for a deposit—especially in cities like Sydney, where the median home price exceeds $1.5 million. OwnHome’s Deposit Boost Loans allow borrowers to purchase with deposits as low as 0%, removing the need for years of rigorous saving.
Faster Process
With OwnHome, the typical drawn-out home-buying process, which takes about 9 months on average, is reduced to just 6 weeks. This means buyers can secure their dream homes before property prices rise further.
OwnHome’s Impact on Affordable Homeownership
Since its inception, OwnHome has helped countless Australians break into the property market. And this is just the beginning. With more than 15,000 applications received by August 2024, OwnHome is poised to support even more families on their path to homeownership.
The company’s rent-to-buy model, which locks in a property’s price at the time of purchase with a small 3.8% annual price increase, is gaining traction as a reliable solution for navigating the housing affordability crisis.
Backed by major Australian banks like CBA and NAB, as well as reputable investors, OwnHome continues to expand its offerings, refine its services, and make homeownership a reality for more Australians.
Take the First Step Toward Homeownership
The Aussie dream of homeownership doesn’t have to remain out of reach. With OwnHome, innovative solutions like Deposit Boost Loans and rent-to-buy models are breaking down the barriers that once held many back.
Whether you’re struggling to save for a deposit or navigating high property prices, their platform offers a pathway towards financial security and stability. Take the first step with OwnHome and transform your renting experience into the joy of owning your dream home.
Source
Explore more entrepreneurial insights and success stories at Inspirepreneur, your go-to magazine for business innovation and leadership.
