“Super as deposit” survey just a media gimmick – Peter White

The Executive Director of the Finance Brokers Association of Australia Peter White says a survey by a loan bidding platform claiming young Australians want to use their superannuation for a home deposit, is simply a media headline and not viable.

Mr White said the topic was a discussion point following the release of the Financial System Inquiry final report in late 2014, and while it does work in some countries, the Australian market is different.

“I’m not against the concept, but the reality is that with the price of housing in Australia, many people in this demographic would not come close to having enough superannuation for a home deposit.

“It also doesn’t take into consideration lending costs, LMI, legal costs, stamp duty and the capability of people to service the loan.

He also pointed out that superannuation exists to support people at retirement and any attempt to use it for housing will open the doors for other uses, negating its ultimate purpose.

“There are state-based first home buyers grants to assist people in this demographic to purchase their first home.”

Mr White said while housing affordability is a real issue and options should be canvassed, this survey should be seen as what it is – an attempt by a sales company with little or no expertise in the superannuation, government housing or lending sectors to generate publicity for its website.