Do you want your smashed avo and a home too?

Respected demographer and social commentator Bernard Salt questioned whether “hipsters” should be spending money on “smashed avocado” brunches instead of saving for a home deposit. Writing in The Weekend Australian, Mr Salt said young people who can’t afford a home deposit should be eating at home rather than going out and buying “smashed avocado with crumbled feta on five-grain toasted bread at $22 a pop”.


The comments have led to a controversy about house prices and thousands of Gen Y and Millennial young people have ridiculed Mr Salts comments on social media. #smashedavo has been a top trending hashtag for almost a week on Twitter and Facebook.


In parliament, The Greens Senator Peter Whish-Wilson held up an avocado in a Senate Estimates Committee meeting and asked Treasury secretary John Fraser whether millennials should forgo smashed avocado to save for a house deposit. Mr Fraser said he was more concerned with the “exorbitant” cost of coffee.


Young people react to #smashedavo


In addition to highlighting high house prices and the difficulties faced by first home buyers in Australian capital cities, particularly Sydney and Melbourne, the #smashedavo controversy has led to an increase in young people searching for affordable properties and affordable home loans.


One lender in particular has benefited from #smashedavo. ME Bank’s “Have your smashed avo and eat it too” promotion for a property search tool pre-dated Mr Salt’s comments.


ME’s Patrick Nolan, said: “We can’t claim responsibility for Bernard Salt’s comments but interest has exploded since then with our avocado campaign on Facebook and Twitter.


“Young people were agitated,” Mr Nolan told Mortgage Business, “They want to keep their lifestyle and save for that home as well.”


Mr Nolan said there has been a 500 per cent increase in website hits.

Have your #smashedavo and a cheap home loan ….

First home buyers are the most likely borrowers to be interested in an Intro Rate Home Loan. The lowest rate home loan rate in Australia right now is an introductory rate (for six months) of 3.25 per cent on the homestar Honeymoon Owner Occupied loan.

The’s Purchase Essentials 80PI loan has an ongoing variable rate of 3.39 per cent with a comparison rate of 3.41 per cent for loan to valuation ratios of up to 80 per cent.


Where can I get a home loan with a small deposit?

Home loans often require a twenty per cent deposit in order to avoid mortgage insurance. However many lenders will let the borrower add the mortgage insurance premium amount to the principal of the loan. This adds to the debt but allows the borrower to buy into the property market with a lower deposit.

If you have a deposit of just five or ten per cent of the property value, you need to find and compare mortgages with maximum loan to valuation ratios of 90 to 95 per cent.

The Westpac Flexi First Option home loan as a maximum LVR with mortgage insurance of 97 per cent.

easystreet’s Easy Honeymoon Home Loan has a maximum LVR of 95 per cent and an introductory rate of 3.49 per cent.

Commonwealth Bank’s 1 Year Guaranteed Rate home loan has an introductory of 4.39 per cent with a maximum LVR of 95 per cent.

You can compare all the home loans from all the major lenders in Australia, while you eat your #smashedavo, at Infochoice here.


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