How your savings could fund affordable homes is a growing question for Australians concerned about the housing crisis. With housing affordability at record lows, innovative financial products like Bank Australia's Impact Term Deposit are channeling customer deposits into loans for social and affordable housing projects, making every dollar count.
The Housing Affordability Crisis in Australia
Australia is facing a severe housing affordability crisis. According to the National Housing Supply and Affordability Council’s State of the Housing System 2026 report, housing affordability hit its worst level on record last year. The time needed to save for a home deposit stretched from nine years in 2015 to 11.2 years in 2025, while the rent-to-income ratio reached 33.1% in December 2025, compared to a 10-year average of 29.1%.
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This crisis is driven by multiple factors, including rising construction costs, insufficient social housing, and planning bottlenecks. The Council recommends planning reform, improved construction productivity, and greater investment in affordable homes, but progress is slow. Meanwhile, more Australians are pushed toward stretched support systems.
How Impact Term Deposits Work
Bank Australia's Impact Term Deposit offers a direct way for savers to support affordable housing. Jane Kern, head of impact management at Bank Australia, explains: “Housing needs funding, and one way we approach this is with loans funded by customer deposits in an Impact Term Deposit.” Even a deposit of $500 can contribute to a pool of lending that funds projects with targeted impact for people and the planet.
Your savings are pooled with others to support loans for affordable and sustainable housing developments. This creates a direct relationship between your deposit and social impact, without requiring you to be a large institutional investor.
Key Benefits of Impact Term Deposits
- Affordable entry point: Start with as little as $500.
- Transparent impact: Know that your money funds affordable housing projects.
- Competitive returns: Earn interest while making a difference.
- Support social good: Help address Australia's housing shortage.
Comparing Traditional Savings vs. Impact Term Deposits
| Feature | Traditional Savings Account | Impact Term Deposit |
|---|---|---|
| Minimum Deposit | Often $0 | $500 |
| Use of Funds | General lending | Targeted affordable housing loans |
| Social Impact | Indirect | Direct and measurable |
| Interest Rate | Variable | Fixed term, competitive |
As the table shows, impact term deposits offer a unique blend of financial return and social responsibility, making them an attractive option for ethically-minded savers.
Why This Matters for Your Wallet and Community
By choosing an Impact Term Deposit, you're not just saving for your future—you're helping to fund homes for those who need them most. This aligns with the broader movement of money as a force for good, where financial decisions create positive social outcomes.
Moreover, with housing affordability worsening, every contribution helps. The pooled deposits enable Bank Australia to provide loans for projects that might otherwise lack funding, supporting both new builds and retrofits for sustainability.
Take Action Today
If you're concerned about housing affordability and want your savings to work harder for society, consider switching to an Impact Term Deposit. It's a simple step with powerful ripple effects.
FAQ
What is an Impact Term Deposit?
An Impact Term Deposit is a savings product where your funds are used to support loans for projects with social or environmental benefits, such as affordable housing.
How much do I need to start?
You can start with as little as $500, making it accessible to most savers.
Is my money safe?
Yes, Impact Term Deposits are offered by authorized banks like Bank Australia and are subject to the same regulatory protections as standard deposits.
In conclusion, your savings can be a powerful tool for change. By choosing an Impact Term Deposit, you're investing in a future where affordable homes are within reach for more Australians.
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