The first home loan deposit scheme, is now underway for 2020. So far, around 3,000 applicants have applied for the scheme with 10,000 spots available.
26 lenders are eligible to take applications for the scheme.
What does this mean for you?
Well, if you’re a first home buyer who’s saved between 5% to 20% of a home deposit, you can use one of these lenders to access the federal government’s first home loan deposit scheme through.
A quick recap on the first home loan deposit scheme: It’s to help first home buyers avoid Lenders Mortgage Insurance, a fee that’s placed on a mortgage when you have a low deposit. The government is coming in to guarantee the rest of the deposit, so that first home buyers can borrow up to 95% of a house without the additional costs of Lenders Mortgage Insurance.
The lenders for the scheme had to go through a strict vetting process, and so first home buyers wishing to take advantage of the scheme must use one of these lenders for their mortgage.
For Harriott, the home and land must be under $600,000 to be eligible for the scheme.
The lenders with applications open as of January 1 2020:
- National Australia Bank
- Commonwealth Bank
The lenders opening applications from February 1 2020:
- 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
Check out if you’re eligible here:
Jinding Developments does not guarantee the accuracy of the information in this article and advise all purchasers to always conduct their own due diligence when purchasing property.