Banks have not always loaned money for homes and even when they did it was very difficult for the buyer to get the loans. So what people did was to buy and sell their homes directly to each other, set up a payment plan between them and then the buyer would move into the house. They would then pay the house off directly to the owner.

In later years developers sold their land this way to consumers. They generally required a portion of the money as deposit and then the payments over a period of time with an interest rate attached.

The deregulation of the banks in the early eighties spelled the near end of this system as foreign banks and foreign money flooded into Australia as "Secured Mortgages" .

There are always those who cannot get a bank loan but can afford the payments, so why should they be denied the opprtunity of Home Ownership.

Executive Members of the committee of the Vendor Finance Association of Australia
2006 to 2013.

First Vendor Finance property was transacted in 1996.

Holders of Victorian Credit Licences
2002 to 2010.

Holders of Australian Credit Licences since 2010 with the introduction of the National Consumer Credit Protection Act.