Photo by Matt on Flickr
Photo by Matt on Flickr
As of today, NAB will begin taking expressions of interest from first home buyers wishing to secure their spot on a waitlist for a home loan through the government's First Home Loan Deposit Scheme.
The First Home Loan Deposit Scheme may not kick off until 1 January 2020, but that hasn't stopped one lender from allowing interested first home buyers to put their hands up.
From today, NAB will begin taking expressions of interest from first home buyers wanting to participate in the First Home Loan Deposit Scheme.
NAB is one of 27 lenders who will be offering loans under the scheme which is set to allow eligible first home buyers the chance to get into the housing market with a deposit as low as 5% under a special government guarantee. Property price caps will also apply under the scheme.
The scheme will be limited to 10,000 loans each year on a first in, best dressed basis, with major lenders NAB and CommBank allocated up to 5,000 of these.
When you consider that for the month of October alone, there were 10,238 home loan commitments made by first home buyers (according to new ABS figures out today), many hopeful buyers are likely to miss out on the scheme.
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.
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. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 03 August 2020. View disclaimer.
NAB Chief Customer Officer for Consumer Banking Mike Baird said NAB was proud to support Aussie first home buyers.
"We understand buying your first home is both an exciting and daunting process and we're here to help our customers throughout this journey," Mr Baird said.
"So far this year, our bankers have supported 18,000 Australians achieve their dream of owning their first home. This scheme is a fantastic way of helping even more customers, allowing them to potentially save thousands of dollars on their mortgage and enter the property market sooner."
Eligible first home buyers applying for the scheme through NAB may also be eligible for a $2,000 cash bonus (conditions apply).
Prospective first home buyers can submit their enquiries online or via phone to a specialised team on 13 60 50.
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 2019. 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 2019) 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 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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