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Westpac research finds only 38% of aspiring first home buyers are positive about their financial future

15 August, 2017

 

  • Aspiring First Home Buyers say the high price of housing (67%) and saving for a deposit (53%) are the main barriers to getting on the property ladder.
  • Westpac launches new savings product ‘Life’ to help Australians reach their long and short term financial goals like saving for a house deposit or preparing for retirement.

New research[1], commissioned by Westpac, has found the majority of aspiring first home buyers are not feeling positive about their financial future (62%), and many are willing to make sacrifices to cut back on spending. It also found that nearly three quarters of Australians that were surveyed believe the next generation will never be able to afford to buy their own home.
 

George Frazis, Chief Executive Consumer Bank at Westpac Group, said the new research reveals that Australia’s housing affordability problem is impacting the financial confidence of Australians: “Current economic conditions combined with low wage growth and the high cost of living is making it extremely difficult for first home buyers, and Australians in general, to remain positive about their ability to save for all stages of life.”
 

The research also found that 71% of Australians believe the government needs to intervene to help tackle the housing affordability problem, and 43% said accessing their superannuation for a home deposit would help them to buy a home.
 

“More than half of aspiring first home buyers are currently saving (56%), and we want to support them to reach their goals sooner, so we’ve created a flexible new savings product with features and tools to personalise your savings goals, that customers say will help them save,” Mr Frazis said.
 

Westpac Life includes the following features and customer benefits:

Multiple savings goals, one account: customers can set up to six different goals within a single account

In a separate Westpac study, 3 in 5 customers and 65% of Millennials agreed they save more if they have specific goals to work towards.[2]

Strong base rate: the most competitive variable base rate of comparable savings accounts offered the Australian major banks[3] at 1.50% p.a., which is at least one per cent higher than the relevant accounts[4]

A competitive base interest rate is important for customers who want to get a good interest rate even in the months they can’t grow their balance.

Bonus rate: customers are eligible for the 0.80% p.a. variable bonus rate if they grow the total account balance in the month, even if they make a withdrawal

The ability to withdraw funds and still have the opportunity to earn bonus interest is an important feature for customers who may need to dip into their savings for unexpected events.

Visual tracker: A visual tracker helps customers to see their progress towards their short and long term goals.

 

In a separate Westpac study, nearly three quarters of millennials (72%) say a tool to track their savings goals would be useful.[5]

 

Existing and new customers aged 18 and over can open a Westpac Life account at westpac.com.au/savings, in branch or by calling 132 032.
 

Westpac’s new ‘Life’ product rate structure comparable to similar savings products offered by the other Australian major banks (as at 9 August 2017):
 

Bank

Product

Variable base rate

Variable bonus rate

Key conditions to earn bonus interest each month

*Note: Other conditions may apply

WBC

Westpac Life

1.50%p.a.

0.80%p.a. (all balances)

  • Customer must make a deposit of any amount each month
  • Account balance must be higher at the end of the month than the beginning
  • Account balance must stay above $0 throughout the month
 

ANZ

Progress Saver

0.01%p.a.

1.80%p.a. (all balances)

  • Customer must make at least one deposit of $10 or more each month
  • No withdrawals and no fees or charges charged to the account throughout the month

CBA

Goal Saver

0.01%p.a.

1.69% p.a.

(balances < $50k)

 

  • Customer must deposit at least $200 each month
  • No withdrawals throughout the month

1.79%p.a. (balances $50k < $250k)

1.89%p.a. (balances $250k < $1m)

Nil (balances $1m+)

NAB

Reward Saver

0.50%p.a.

2.05%p.a. (all balances)

  • Customer must make a deposit of any amount each month
  • No withdrawals throughout the month

Rates provided above are current as of 15th August 2017 and are subject to change.

For full Westpac Life product information, including other features and conditions, visit the Westpac Life page on our website.

Access Part 1 of the research report here- 'A place to call home - Australians' view on housing affordability' prepared for Westpac by Ipsos

 

[1] Research was conducted by Ipsos on behalf of Westpac. The online survey was conducted with N=2,000 respondents aged between 20-70 years between March to April 2017.

[2] Research was conducted by PureProfile on behalf of Westpac. The online survey was conducted with N=2,000 respondents aged between 18-35 years, nationally representative of Australia.

[3] ‘Major banks’ means WBC, CBA, NAB and ANZ.

[4] Information current as at 9 August 2017. Please see comparison table on page two for further detail.

[5] Research was conducted by PureProfile on behalf of Westpac. The online survey was conducted with N=2,000 respondents aged between 18-35 years, nationally representative of Australia.