Putting out the welcome mat: New option for Tasmanians locked out of the property market

Bank of us has launched a new option which is designed to help Tasmanians open the door to home ownership.

Bank of us Customer Manager Georgina Brown said the new Extended Home Loan Term allowed eligible customers to repay a home loan over a longer period.

This reduces loan repayments and could make the difference to someone qualifying for a home loan.

“It is not uncommon for us to see people who are excellent candidates missing out on loans and homes for a range of reasons,” Ms Brown said. “It might be because they are early in their career or working reduced hours because of family responsibilities.

“Our extended term option is available up to 40 years for customers who are unable to qualify for a standard 30-year loan term. This provides us more flexibility to match where people are in life.

“So as customers’ careers progress, or they return to full-time work, they can pay off their loan faster with no penalty, which is a feature of all our home loans.

The extended term option is available for established properties and new builds.

Ms Brown said the option responded to the way people’s lives change over time, while providing flexibility and security over the course of the loan term.

“Our message is if you have been feeling frustrated by not being approved for a standard 30-year loan, our extended loan term might be a good option,” she said. “It may just have been designed with you in mind.”

New option part of a broader mission

Bank of us CEO Paul Ranson said the new loan option was part of a broader mission to support people into home ownership in response to the challenges Tasmanians had faced in past years.

“We are Tasmania’s only customer-owned bank – which means we think and act differently,” Mr Ranson said. “The profits we make are invested in improving the Bank for the good of our customers.”

The Bank’s commitment to get more Tasmanians into home ownership includes the Tasmanian Government’s MyHome program, for which Bank of us is the sole lending partner.

“MyHome is a shared equity program, which means Tasmanians who have been struggling to save a deposit have the chance to achieve their dreams,” Mr Ranson said.

“Since the program began in July 2022, MyHome has supported the purchase of hundreds of properties across the state. As a result, 750 Tasmanians are now living in their own homes.

“MyHome not only reduces the demand for rental and social housing, it creates jobs, stimulates the economy and contributes to a fairer Tasmania.”

Lending criteria, terms and conditions, and fees and charges may apply to Bank of us products.

Media contact: Jason Purdie, 0455 838 945