NAB and CommBank open up new First Home Loan Deposit spots

author-avatar By on October 21, 2020
NAB and CommBank open up new First Home Loan Deposit spots

Photo by Scott Webb on Unsplash

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.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 28, 2021. View disclaimer.

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). 

In August it was revealed the Scheme supported one-in-eight first home buyers, while other banks have introduced their own discounted LMI special offers outside of the Scheme. 

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.

Commonwealth Bank and National Australia Bank are the two major banks participating, while the remaining ones are:

  1. Australian Military Bank
  2. Auswide Bank
  3. Bank Australia
  4. Bank First
  5. Bank of us
  6. Bendigo Bank
  7. Beyond Bank Australia
  8. Community First Credit Union
  9. CUA
  10. Defence Bank
  11. Gateway Bank
  12. G&C Mutual Bank
  13. Indigenous Business Australia
  14. Mortgageport
  15. MyState Bank
  16. People’s Choice Credit Union
  17. Police Bank (including the Border Bank and Bank of Heritage Isle)
  18. P&N Bank
  19. QBANK
  20. Queensland Country Credit Union
  21. Regional Australia Bank
  22. Sydney Mutual Bank and Endeavour Mutual Bank (divisions of Australian Mutual Bank Ltd)
  23. Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)
  24. The Mutual Bank
  25. WAW Credit Union

Disclaimers

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): Great Southern Bank, 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.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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