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 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Variable | More details | ||||||||||||
| FEATURED | Variable Home Loan (LVR < 70%)
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Variable Home Loan (LVR < 70%)
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| Variable | More details | ||||||||||||
| FEATUREDREFINANCE ONLY | Variable Rate Home Loan – Refinance Only
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Variable Rate Home Loan – Refinance Only
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| Variable | More details | ||||||||||||
| FEATUREDAN EASY DIGITAL APPLICATION | Neat Variable Home Loan (Principal and Interest) (LVR < 60%)
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Neat Variable Home Loan (Principal and Interest) (LVR < 60%)
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| Variable | More details | ||||||||||||
| NO ONGOING FEES | Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%
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Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%
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- Min 30% deposit
- No monthly or ongoing fees, add 0.10% for offset
- Unlimited redraws
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *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. Rates correct as of August 14, 2022. 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:
- 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
Disclaimers
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.
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