AFL draft week may have come and gone, but there has been an arguably, even bigger pick made. The First Home Loan Deposit Scheme (FHLDS) was recently announced, and since then, we have seen a trickle of information around it come through to the market. It has now been announced that NAB bank has been named as the first of the two major lenders that will sit on the panel of the scheme.
This means that NAB will be one of the few lenders who will be able to write loans under this scheme. NAB will be one of two major lenders on the lending panel, who, combined, will only be eligible to write 50 per cent of the 10,000 annual loans available under the scheme. This cap will allow for, and encourage, a greater involvement of the smaller lenders within the market.
The National Housing Finance and Investments Corporation (NHFIC) appointed NAB based on competitiveness of offerings, geographic reach, customer care, and their ability to meet the deadline of 1 January 2020 for the implementation of the scheme. This will be the case for any lender who will be added to the lending panel.
Additionally, NHFIC, along with Michael Sukkar, federal Minister for Housing and Assistant Treasurer, have outlined that members of the lending panel are not able to charge an interest rate that is any higher than those applied to consumers that are ineligible for the scheme.
Due to commence on 1 January 2020, the scheme is gaining a lot of attention. With the overarching aim, to help more first home buyers enter the market, the scheme enables these people to shave years off saving for a deposit, and similarly, thousands off potential Lenders Mortgage Insurance (LMI).
Mike Baird, Chief Customer Officer of NAB, said that he and the bank are proud to have been selected as the first lender for the scheme; “this scheme is a fantastic way of helping even more customers, allowing them to potentially save thousands of dollars on their mortgage“.
This scheme opens a door for many younger Australians, and those who have not yet entered the property market. While open to a majority of first home buyers, there are certain requirements a person, and the relevant property, must fit within. Engaging with a broker can help you make sure you are ticking the right boxes and getting the most suitable outcome for your given situation. Trust the experts to get you in to your first home, contact a Capita Broker today.