The first home loan deposit scheme, announced earlier this year is well on its way to becoming a reality. 26 lenders were announced as eligible participants in the scheme.
What does this mean for you?
Well, if you’re a first home buyer who’s saved between 5% to 20% of a house deposit, you now know which lenders you can access the federal government’s first home loan deposit scheme through.
A quick recap on the first home loan deposit scheme: It’s to help first home buyers avoid Lenders Mortgage Insurance, a fee that’s placed on a mortgage when you have a low deposit. The government is coming in to guarantee the rest of the deposit, so that first home buyers can borrow up to 95% of a house without the additional costs of Lenders Mortgage Insurance.
The lenders for the scheme had to go through a strict vetting process, and so first home buyers wishing to take advantage of the scheme must use one of these lenders for their mortgage.
The lenders opening applications from January 1 2020:
- National Australia Bank
- Commonwealth Bank
The lenders opening applications from February 1 2020:
- Australian Military Bank
- Auswide Bank
- Bank Australia
- Bank First
- Bank of us
- Bendigo Bank
- Beyond Bank Australia
- Community First Credit Union
- Defence Bank
- Gateway Bank
- G&C Mutual Bank
- Indigenous Business Australia
- MyState Bank
- People’s Choice Credit Union
- Police Bank (including the Border Bank and Bank of Heritage Isle)
- P&N Bank
- Queensland Country Credit Union
- Regional Australia Bank
- Sydney Mutual Bank and Endeavour Mutual Bank (divisions of Australian Mutual Bank Ltd)
- Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)
- The Mutual Bank
- WAW Credit Union
The first home loan deposit scheme will assist 10,000 eligible first home buyers nationwide.