Twenty-seven lenders have now been endorsed to participate in the First Home Loan Deposit Scheme in the lead up to the scheme starting on 1 January 2020.
The scheme, which will provide support for up to 10,000 first home loan guarantees for eligible first home buyers each financial year, aims to help first home buyers purchase a home faster.
HIA Managing Director, Graham Wolfe, said the Government’s commitment to involve a range of lenders in the First Home Loan Deposit Scheme was important in ensuring that first home buyers have a genuine choice from whom they obtain their home loan.
“It’s encouraging to see so many lenders wanting to be involved,” Mr Wolfe said.
“Their commitment to offer the same interest rates to participants in the scheme is also critical.”
One of the banks jumping on board is Bendigo and Adelaide Bank, who will start receiving applications from 1 February 2020. Managing Director, Marnie Baker, said they commended the initiative as a great first start for the many prospective buyers who may have thought home ownership wasn’t achievable in the near term.
“Home ownership is a great way for people to build equity for their future which at the same time helps stimulate community prosperity and economic growth, something that stems back to the role Bendigo Bank played in enabling home ownership during Victoria’s goldrush era,” Ms Baker said.
Mr Wolfe said housing supply needs to remain a national priority to stem the decline in home ownership rates in Australia in the last 25 years.
“HIA has long argued for a national approach to addressing the added costs that affect the final price of a home for many first home buyers,” he said.
“The time it takes to save a 20 per cent deposit, along with the added upfront cost of mortgage insurance, along with stamp duty and securing finance, remains one of the main barriers to people’s home ownership aspiration.
“Helping 10,000 first home buyers a year achieve their home ownership dream sooner by providing a guarantee under this scheme to remove one of these added costs will make a real difference.
“With the house price caps and lenders panel now locked in, people saving for their first home can begin to make a choice about whether to take up the opportunity in the new year and get into their first home sooner.”