Push to allow first home buyers to access their superannuation

Australian home owners are at least 13 months ahead with their mortgage, according to one of our biggest lenders, the National Australia Bank.

But independent senator Nick Xenophon says it is not helping first timers.

He is introducing a bill to parliament that, if successful, would allow first home buyers to use their superannuation as a deposit.

The timing’s perfect, after the banks and big lenders started a new home loan war, as the Commonwealth Bank cut five-year fixed rate loans to 4.99 percent.

Now others promise to go even lower.

Low rates make it easier to get ahead with loan repayments.

Take Australia’s average house, which last year increased in value by $41,500 to just under $628,000.

With a $400,000 mortgage, if the owner is 13 months ahead, that’s an extra $28,000.

In other words, that typical home owner’s wealth has increased almost $70,000 in the past year, without them feeling a thing.