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Smaller lenders taking applications for home loan deposit scheme


Non-major lenders have started offering another 5,000 slots for the First Home Loan Deposit Scheme, which allows first home buyers to purchase a property with a deposit of 5% without having to pay Lenders Mortgage Insurance (LMI).


The scheme, which is overseen by the National Housing Finance and Investment Corporation (NHFIC), kicked-off on 1 January but only 5,000 spots were initially available through two major banks – NAB and CBA.


NHFIC CEO Nathan Dal Bon says the additional 25 lenders are located around the country and will provide first home buyers with a range of choices.


“More places are now available to help first home buyers purchase a modest home sooner,” Mr Dal Bon adds.


The 25 other lenders


The NHFIC says the 25 non-major participating lenders below are supporting the scheme by committing to not charging eligible customers higher interest rates than equivalent customers outside of the scheme.


Australian Military Bank


Auswide Bank


Bank Australia


Bank First


Bank of us


Bendigo Bank


Beyond Bank Australia


Community First Credit Union


CUA


Defence Bank


Gateway Bank


G&C Mutual Bank


Indigenous Business Australia


Mortgageport


MyState Bank


People’s Choice Credit Union


Police Bank (including the Border Bank and Bank of Heritage Isle)


P&N Bank


QBANK


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


Details on eligibility can be found on the scheme’s website here. You can also check out the property price caps here.


Want to find out more?


If you want to apply for this new scheme then it’s best to give us a call sooner rather than later, as the major banks have already registered more than 3,000 potential first home buyers for the 10,000 spots up for grabs this financial year.


We’d be more than happy to run you through the scheme in more detail and, if you’re eligible, help you apply through a participating lender.


Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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