Raiz launches Raiz Home Ownership to help users buy a home

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on May 26, 2021
Raiz launches Raiz Home Ownership to help users buy a home

Micro investing platform Raiz wants to make it easier for Australians to get into the property market or refinance by launching Raiz Home Ownership.

Raiz Home Ownership gives Raiz customers access to qualified home specialists who can guide them through home loan products from up to 50 banks and lenders and negotiate with them directly.

Raiz Home Ownership is also part of the Raiz Rewards program, so for every home loan settled through the platform, Raiz will invest $300 into the customer's Raiz Invest or Raiz Super Account upfront. 

While the loan is outstanding, Raiz will also invest $12.50 a month into Raiz Invest or Raiz Super. 

Related: Micro-investing platforms compared.


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 18, 2022. View disclaimer.


CEO of Raiz Invest Australia Brendan Malone said Raiz Home Ownership is a natural evolution for the company. 

“Raiz customers typically open their accounts between 18-24 years of age, before they are in a position to purchase a home," Mr Malone said. 

"But once they are ready, they may take all their investments to put towards a deposit for a home and may or may not continue to invest through Raiz Invest and instead put more towards their mortgage in offset.

“Raiz Home Ownership allows our customers to continue to invest in Raiz, either by round-ups or through the upfront reward and the $12.50 payment each month.

"This keeps them connected with the community and lets them continue to learn more about investing, markets and general financial literacy."

Raiz Home Ownership can be used by Raiz customers who are saving for a mortgage or who have already saved a deposit, as well as for those looking to refinance. 

“Around 66% of the people we have engaged have been First Home Buyers and we are focusing our education on this group,” Mr Malone said.

“Our incentives being offered we believe are competitive and keep customers within the Raiz ecosystem.”

See also: Raiz's personalised 'Custom' portfolio launches.

Since Raiz Home Ownership was launched earlier this month, 46% of leads progressed have been for first home buyers and 54% for refinancing.

Mr Malone said the service walks customers through the application process and beyond.

“The Raiz Home specialist team will call the customer at least once a year to check in and assess their situation, which is not typical for lenders at this end of the market," he said.

“We are taking the pressure away by guiding customers through the lending process. Our team will negotiate with the lender and will provide options to ensure a smooth experience to get people into a new home or refinance an existing loan."


Photo by Jaye Haych on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at Savings.com.au which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

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