How does OwnHome compare to a mortgage?

A mortgage and OwnHome are both paths to homeownership, but they differ in very important ways.

If you’re ready for a mortgage, well done! Saving up to a 20% deposit is something to celebrate. If you’re not yet there, here’s how the key differences with OwnHome stack up.

Unlike a traditional mortgage, OwnHome lets you live in your new home while you save up to buy it. You get to lock-in the future price of your dream home, giving you certainty while you save.

The best part? If your home valuation grows fast, you get to keep the capital gains above the pre-agreed price.

Let’s take a look at some of the key differences between OwnHome and a traditional mortgage.

  1. A mortgage typically requires a deposit of at least 20%. With OwnHome, you can select almost any home available on the open market with just 3% in savings, so around 85% less than you would typically need for a 20% deposit. A large part of the upfront cost with OwnHome goes towards your security deposit that you can use for your future deposit when you’re ready to buy.
  2. A traditional mortgage is typically a 25-30 year debt commitment. You are responsible for paying back the mortgage amount in full, even if you sell the home in the future for less than you bought it. OwnHome is not a debt commitment - you can walk away any time.
  3. Unlike a mortgage, where you are then responsible for all of the additional outgoings, with OwnHome, we take care of: strata fees; council rates; building insurance; maintenance and repairs. These costs can really add up, and are often forgotten about when someone signs up to a mortgage.
  4. Unlike a financed home purchase, OwnHome buys all of its homes with cash, meaning you get a leg-up in negotiations when shopping for your new home. 
  5. With OwnHome, you get a team of experts to help you find, value and purchase your dream home. With a mortgage, you just get the money. 

Get started with OwnHome and get qualified in just fifteen minutes. You could be home shopping in just a few days.