New data has shown a significant rise in single females applying for mortgages as more single women purchase property on their own.
Why is everyone in shock that females can be financially stable and sensible to have saved for a deposit on their own and also be able to service a mortgage?
No question is asked of single men who do the same thing!
As people seem to be marrying or entering de facto relationships later in life than previously was the case, single females have taken the opportunity to set themselves up in life without a man in their financial plan.
This involves women purchasing land and planning to build or purchasing properties to live in or rent out. According to data obtained from Aussie Home Loans, who have a panel of 20 lenders including the big four banks, individual female applicants made up 11.22% of all applications in 2015. Compared to individual male applicants making up 12.34% of total applicants; that is 1,178 more male applicants than female.
This data is consistent with the pay gap between men and women getting closer and also women working in more senior roles and breaking the glass ceiling. Also, it is a recognition of the cultural shift in women owning property and also them being able to service a mortgage on their own.
So what happens if a man becomes part of the equation later in life?
Perhaps you should consider a Financial Agreement to set out clearly what you wish to occur in the event of separation and clearly identify your initial financial contributions.
Without an Agreement, the Family Law Act 1975 (Cth) will dictate what weight is given to your initial contribution. It is important to note that your contribution does not get weighted more heavily because it is in property. The net equity value is all that is compared to your partner’s initial contributions, whether that be by way of net equity in a property or just cash in the bank. No more weight is given because it was in property at the time with the potential to grow faster or because it “spring boarded” you as a couple in future investments.