Both CommBank and NAB began accepting new requests for the First Home Loan Deposit Scheme today, after its extension was announced earlier in October.
The scheme (FHLDS) was extended as part of the 2020-21 Federal Budget for an additional 10,000 places, and supports applications from 6 October to 30 June next year.
The revised Scheme tightens its focus, and is instead only eligible for those purchasing new builds, which could also be used in conjunction with HomeBuilder.
It took just over four months for all 10,000 spots to be filled in the first wave of places, and under the FHLDS, there are 27 lenders participating (seen below).
CommBank and NAB comprise of about 50% of the loans settled under the Scheme since inception, according to a source at NAB.
Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.
Smart Booster Home Loan
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Unlimited redraw facility
Monthly repayments: $1,476
- Discount variable for 1 year
- No ongoing fees
- Unlimited redraw facility
Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
CommBank group executive Angus Sullivan said one in four home loans Australia-wide are with the bank, and said the bank has helped more than 3,000 borrowers settle a home under the Scheme, which has seen 20,000 spots in total available.
"We know that saving for a deposit can be difficult. Given the challenges faced by many of our customers over the past few months, we support any initiatives that play a constructive role in helping first home buyers get onto the property ladder and support the broader economic recovery, specifically in the construction industry," Mr Sullivan said.
“We are proud to have been a major participant in the Scheme since its inception and have helped more Australians purchase a home under the Scheme than any other lender."
NAB home ownership executive Andy Kerr said the Scheme was popular, and that the bank expects it to remain so this time around.
“The expansion of the Scheme will provide more opportunities for Australians to enter the housing market, while the focus on new builds will also support Australia’s critical construction sector," he said.
The FHLDS allows first home buyers to buy into the market with only a 5% deposit, without paying lenders mortgage insurance (LMI).
New FHLDS price caps
As part of the extension announcement earlier in October, price caps for capital cities were also raised. The cap movements are:
- Sydney: From $700,000 to $950,000
- Melbourne: From $600,000 to $850,000
- Brisbane: From $475,000 to $650,000
- Canberra/ACT: From $500,000 to $600,000
- Perth, Adelaide, Hobart: From $400,000 to $550,000
- Darwin/NT: From $375,000 to $550,000
A number of regional centre specifications were also broadened and raised as well.
Lenders participating in the First Home Loan Deposit Scheme
All up there are 27 lenders participating in the FHLDS.
- 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 entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:
- The big four banks are: ANZ, CBA, NAB and Westpac
- The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
- The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.
In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.
*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
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