Westpac’s new savings account offer to help younger Aussies get into the property market
Property ownership can often seem like an uphill battle for many Aussies, but recent figures by Westpac show that the market doesn’t seem to be slowing prospective first home buyers down.
According to recent Westpac data, March and April this year recorded the highest number of first home buyers, compared to the same period in 2016 and 2017.
The data also found that Westpac customers aged 25-34 have got their eyes on a new home rather than a holiday, with 70% of their money being saved in the ‘Home and Property’ category of their Westpac Life savings account.
“Millennials are often depicted as a generation more focused on life experiences and living in the ‘now’. However, our research shows that many are in fact taking saving for a home deposit seriously and prioritising it above other goals including travel or lifestyle,” said Westpac’s Head of Savings Kathryn Carpenter.
The dream of property ownership wasn’t wasted on the younger generation either, as those aged 18-24 have already begun saving for a home and the average balance in their ‘Home and Property’ category is currently sitting at 50% of older millennials average.
“Our data shows reaching 25 appears to be a key tipping point for customers moving from thinking about saving for a home, to seriously saving for one,” Carpenter says.
However, ‘Holiday and Travel’ was still the more popular category for younger customers.
And to reward the young Aussies stashing every dollar into the Westpac Life account, the big bank has announced customers can now earn additional bonus interest if they are saving for a home.
The offer is available for customers for six months when they add a new ‘Home and Property’ savings goal.
With the already existing bonus interest, Aussie savers can see their monthly balance grow by another variable 1.0% in addition to the variable 1.5% base rate.
“To save up to 20% for a deposit, you’re looking at over $100,000 for the average dwelling in Australia. This is a substantial amount of money for young people to save in the current climate, even with cooling property prices,” says Carpenter.
“To give first home buyers an extra boost we’ve introduced an additional bonus rate for those saving for a home. It is a small way to give first home buyers some extra help on their journey to owning their first home.”
How to get the most out of saving for your dream home
- Give up a vice and put the cash elsewhere - A classic money-saving tip is to give up a vice. So instead of spending $70 a month on takeaway coffee, contribute it to your savings account.
- Pick the right savings account - You’ll get far less value from just picking any old savings account, so shop around and compare the latest high interest savings accounts on the market. And if you are willing to lock your cash away for a while, you might consider a term deposit.
- Set yourself a goal and work towards it - Keep motivated and on track by giving yourself a savings goal that’s realistic, achievable and that you’re willing to stick to. It’s worth also keeping it somewhere visible, like on your smartphone lock screen to hold yourself accountable.
But if you’re one of the lucky Aussies ready to buy your dream home, then head over to our home loan comparison tool to check out some current home loan deals.