House deposit

PHOTO: Australia

  • The Morrison government’s flawed early access to super scheme has been exploited by some Australians vying to buy a home.
  • While intended to allow Australians to withdraw $10,000 of retirement savings to survive financial hardship caused by COVID-19, some are using it to get onto the property ladder.
  • Several mortgage brokers told Business Insider Australia attempts to do so have become “widespread”, although most lenders are reluctant to approve these applications.

Never ones to let a pandemic go to waste, some Australians have been trying to exploit the government’s flawed super withdrawal scheme to get onto the property ladder.

While the early access to super scheme was intended to allow those hardest hit by the COVID-19 pandemic to survive financial hardship and make ends meet, some see it as an opportunity to get ahead.

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There’s been no shortage of Australians who have taken advantage of the scheme to cobble together a home deposit as the scheme fails to properly vet applicants.

Mortgage brokers have confirmed to Business Insider Australia that they are receiving loan applications, some daily, in which a $10,000 or $20,000 deposit has been withdrawn from a superannuation account.

“Over the past two weeks, myself and other brokers I work with have interviewed many prospective buyers who have accessed the $10,000 – [or] $20,000 if a couple – to use as the deposit for a home, when their income has been unaffected,” one broker said, asking for their name not to be published.