Daniel Hegarty

Habito launches home-financing service to give FTBs loans to make cash offers




Habito has launched a new home-financing service for first-time buyers (FTBs).

Habito Go is designed to provide FTBs with the negotiating power which is usually only experienced by cash buyers.

Habito believes the product will ease the fear of uncertainty associated with buying, which effects 47% of FTBs, according to Habito’s latest survey conducted by YouGov.

Highlights of the Habito Go product include:

  • available exclusively to approved Habito FTB mortgage customers with up to 85% LTV
  • using information already given in the mortgage application process, each customer’s eligibility is assessed along with the likelihood of being approved for mortgage financing 
  • once approved, the homebuyer can make their Habito Go ‘cash’ offer and will only be charged in the event that they complete the purchase of the property, at a rate of 1.95% of the total value of the property
  • as soon as the customer applies to use Habito Go, a survey is carried out on the property to ensure it meets Habito’s criteria. The buyer will then continue to apply for their mortgage through Habito’s brokerage. In the instance that the mortgage doesn’t come through in time, the buyer would buy their home with the Habito Go loan and pay interest at a fixed rate of 0.5% of the loan per month (calculated daily) until the mortgage is completed. The mortgage is then used to pay off the Habito Go loan
  • as an official homeowner, Habito would cancel the customer’s original mortgage application, which was a mortgage for a new purchase – and apply for a remortgage instead
  • Habito will ensure the Habito Go customer gets a mortgage for the same amount and the same term as the original mortgage we cancelled. If there’s any difference in the cost of that new mortgage over the fixed term, we will pay the buyer the difference as cashback
     

“All our research tells us that homebuying is riddled with uncertainty and a lack of control that most people just don’t feel equipped for, and first-time buyers probably have it the hardest,” said Daniel Hegarty, founder and CEO at Habito (pictured above).

He added that with Habito Go, it hoped to “alleviate” this by arming buyers with the power of a cash offer for their dream home.

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