Photo by bruce mars on Unsplash
The National Housing Finance and Investment Corporation (NHFIC) has today launched an interactive online tool to help first home buyers assess their eligibility for the scheme, which kicks off 1 January 2020.
The new interactive questionnaire will indicate whether potential applicants are eligible to apply by asking questions relating to citizenship, whether or not they have ever owned or had an interest in residential property in Australia, and what their taxable income is.
To be eligible for the scheme, you must be a first home buyer on an income of up to $125,000 for singles, or a combined income of up to $200,000 for couples (both must be first home buyers).
“The tool is provided as a guide only and does not mean that people using it will receive either a guarantee or a loan from a participating lender,” the NHFIC said in a statement.
“It is your responsibility to find out whether or not your particular circumstances make you eligible for the First Home Loan Deposit Scheme. If in doubt, it is your responsibility to get the advice you need from a participating lender or otherwise to be sure of your position.”
The table below displays a selection of variable-rate home loans on offer, featuring a low-rate pick from each of the following three categories: the big four banks, the top 10 customer-owned banks, and the larger non-banks.
Lender | Advertised rate | Comparison rate* | Monthly repayment | Rate Type | Offset | Redraw | Ongoing Fee | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Pre-approval | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Variable | More details | ||||||||||||
| FEATUREDLIMITED TIME OFFER | Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
| ||||||||||||
Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
| |||||||||||||
| Fixed | More details | ||||||||||||
| NO UPFRONT OR ONGOING FEES | Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years | ||||||||||||
| Fixed | More details | ||||||||||||
Fixed Home Loan 2 year (Principal and Interest) (LVR < 80%)
| |||||||||||||
| Variable | More details | ||||||||||||
| 100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
| ||||||||||||
Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
| |||||||||||||
| Variable | More details | ||||||||||||
| FEATUREDZERO APPLICATION FEESFEE FREE OFFSET | Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)
| ||||||||||||
Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)
| |||||||||||||
| Variable | More details | ||||||||||||
| FEATUREDREFINANCE IN MINUTES, NOT WEEKS | Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)
| ||||||||||||
Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)
| |||||||||||||
- 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%
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 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 $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of January 21, 2022. View disclaimer.
The eligibility tool will complement the existing property price lookup tool that has been developed to assist first home buyers to determine the property price threshold that applies under the scheme.
The scheme will be targeted to ‘entry-level’ properties, with a maximum eligible loan size determined on a regional basis to reflect the median house prices and stamp duty concessions in each of the states and territories.
First Home Loan Deposit Scheme property price caps:
| Region | Price Cap ($AUD) |
| NSW – capital city | $700,000 |
| NSW – regional centre (Newcastle and Lake Macquarie) | $700,000 |
| NSW – regional centre (Illawarra) | $700,000 |
| NSW – other | $450,000 |
| VIC – capital city | $600,000 |
| VIC – regional centre (Geelong) | $600,000 |
| VIC – other | $375,000 |
| QLD – capital city | $475,000 |
| QLD – regional centre (Gold Coast) | $475,000 |
| QLD – regional centre (Sunshine Coast) | $475,000 |
| QLD – other | $400,000 |
| WA – capital city | $400,000 |
| WA – other | $300,000 |
| SA – capital city | $400,000 |
| SA – other | $250,000 |
| TAS – capital city | $400,000 |
| TAS – other | $300,000 |
| ACT | $500,000 |
| Northern Territory | $375,000 |
| Jervis Bay Territory & Norfolk Island | $450,000 |
| Christmas Island & Cocos (Keeling) Island | $300,000 |
Applications for the scheme open on 1 January 2020 and will be lodged directly through participating lenders and their brokers.
“NHFIC has received strong interest from both potential first home buyers and lenders in the scheme, having responded to more than 1,300 enquiries about the scheme to date,” the NHFIC said.
Last week, NAB was announced as the first lender to be appointed to the panel with the remainder of the panel to be announced in the coming weeks.
Westpac was allegedly axed as the second major lender for the scheme after being accused of 23 million money-laundering breaches by watchdog AUSTRAC, some of which may have funded child exploitation in Southeast Asia.
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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