Young Aussie mum who thought she was doing the right thing by getting on the property ladder issues a grim warning to aspiring homeowners
A single mum on a six figure salary who bought her first home now regrets the decision, which has turned her life into a financial nightmare.
Bonnie Hanson, 35, bought a three bedroom townhouse in Newcastle north of Sydney with a $550,000 bank loan under the Family Home Guarantee scheme in 2021.
The federal initiative established by the former Coalition government allows up to 10,000 single parents to buy a home with a deposit of as little as two per cent.
Ms Hanson paid five per cent and wasn’t concerned about the small deposit paid as she had a well-paid office job.
‘I bought a house by myself as a single mum, and I was so proud of myself,’ she explained in a recent TikTok.
‘I was like, “f*** yeah, f*** the man. I did it. I don’t need anyone. I can do things, big, hard things, by myself”.’
Within six months, Ms Hanson’s mortgage repayments had almost doubled from a reasonable $500 per week to $900, which left her struggling to make ends meet.
‘I bought at a bad time. I bought when house prices were really high and interest rates were really low, which, at the time, didn’t seem like a bad thing,’ she recalled.
Bonnie Hanson said she has seriously considered selling her first home given the financial pressures after a tough four years of interest rate hikes
‘But then the interest rates rose rapidly, so rapidly I couldn’t keep up.
The cash rate soared from 0.10 per cent in 2021 to a high of 4.35 with 13 consecutive rate hikes until the first official cut in more than four years earlier this year.
Ms Hanson blamed the banks for allowing her to take out a loan she feels she should never have been approved for.
‘The thing that feels the most unfair is the irresponsibility of the bank that loaned a single mum that amount of money,’ she told news.com.au.
‘They’ve set us up to fail, and in terms of home ownership, it is horrific.’
She has lodged formal complaints with the banks, which are yet to respond to her.
Ms Hanson said the amount left owing on her home remains high because she bought at the peak of the market.
The single mum estimated that she has forked out $150,000 in mortgage repayments in the last three years, but only a fraction of that amount ($25,000) has been sliced off the loan.
She couldn’t believe the bank had approved the loan for her Newcastle townhouse at the time
It left her wondering as what else she could have done with the money.
Ms Hanson has since moved out of her home, which she has leased out to a relative while she rents a more affordable property.
While having a tenant has helped ease the financial strain, it has far from solved them.
Ms Hanson is weighing up whether to sell her home and pursue a new job in something more rewarding, leaving her home ownership dreams in tatters.
However, she still wants to own a place her two kids can call home.
‘What if I die tomorrow and I’ve spent the best years of my life paying this f***ing mortgage?’ Ms Hanson asked on TikTok.
‘Paying unbelievable interest in three years … what could I have done with $150,000 in my pocket, what would $150,000 look like for my children if I had just saved that money.
‘But it’s gone to a bank, for no f***ing reason.’
Bonnie said her home ownership dream has turned to a nightmare in recent years (stock image)
‘Have I failed? Have I made a bad investment?’
Ms Hanson’s story resonated with many viewers shared similar home ownership ordeals.
Others pleaded with Ms Hanson to not give up on home ownership.
‘Do not sell your house. In 30 years when you retire you will be glad that u have a fully paid off house,’ one said.
Another added: ‘This is exactly what happened to me. Single mum too and I am so angry about what happened.’
‘However, do not sell your house! I almost did, but long term it is better to keep it. It is getting better.’
A third advised that she speak to a financial advisor about her options and consider using her equity to downsize or to re-tenant the home.
In 2021, more than 10,000 single parents were entitled to access to the Family Home Guarantee scheme.
The initiative was designed to help eligible single parents or legal guardians with at least one dependent child buy a property sooner.
The scheme allowed eligible buyers to purchase a home with a small deposit without needing to pay lenders mortgage Insurance through a participating lender.
The guarantee is not a cash payment or a contribution toward the deposit.
