CommBank has committed to a minority investment in rent-to-own startup OwnHome, through its venture scaling entity x15ventures.
X15 has joined strategic partner, SquarePeg, in OwnHome’s Series A fundraising round, which will be used to fuel the company’s growth.
OwnHome provides an alternative path to home ownership for aspiring buyers who can afford regular mortgage repayments but are looking to overcome the deposit hurdle, particularly those with no access to parental financial support.
Toby Norton-Smith, Managing Director of x15 said, “This is a particularly satisfying investment to make, given we’ve worked with the OwnHome team since they first founded and launched with the support of our Xccelerate program, and because our strategic VC partner SquarePeg is leading the round.
“We believe OwnHome will provide an alternative path to home ownership, particularly for first home buyers who are responsible savers but aren’t able to rely on the bank of mum and dad for help with the deposit.”
Angus Sullivan, CBA’s Group Executive Retail Banking Services said, “OwnHome is helping to address one of the biggest challenges currently facing first-time home buyers, which is finding new ways to save and put down a deposit on their cherished property."
James Bowe co-founder at OwnHome said, “In just over a year, we've continued to grow our team and customer base, partnered with :Different, and have recently expanded into the Queensland property market. Xccelerate2020 helped set us up for success in the early days of OwnHome, providing us with the funds and expertise to take us from a small team to a growing alternative for those eager to secure their path to home ownership today.
“As we scale and shape the model in Australia we will continue to benefit significantly from the support of like-minded partners in CBA and x15, who share our mission to help more people on the road to home ownership.”
OwnHome joins a growing portfolio of ventures at x15 expanding expand on CBA’s core home buying business. These include free credit score provider, Credit Savvy, conveyancing platform, Home-In, property management company, :Different, and a soon-to- launch digital home loan proposition, Unloan.