7,000 more slots to open with the First Home Loan Deposit Scheme

If you didn’t already know, the Federal Government’s First Home Loan Deposit Scheme has been in operation - partially - for almost a month, but it’s about to be in full swing. 

As of this Saturday, 1 February, 25 non-major lenders will join NAB and Commonwealth Bank in taking applications from first home buyers for the new scheme.  

The two major banks have registered 3,000 of the total 10,000 guarantees made available, for which they have been taking applications already. While the other lenders - that were announced by the National Housing Finance and Investment Corporation (NHFIC) last year - have been given the remaining 7,000 slots between them, and NAB and CommBank, which open up on the weekend. 

So who are the lenders opening their doors to the First Home Loan Deposit Scheme in February 2020? Check out the list below! 

  • Australian Military Bank
  • Auswide Bank
  • Bank Australia
  • Bank First
  • Bank of Us
  • Bendigo Bank
  • Beyond Bank Australia
  • Community First Credit Union
  • CUA 
  • Defence Bank
  • Gateway Bank
  • G&C Mutual Bank
  • Indigenous Business Australia
  • Mortgageport
  • MyState Bank
  • People’s Choice Credit Union
  • Police Bank (including the Border Bank and Bank of Heritage Isle)
  • P&N Bank
  • QBANK
  • Queensland Country Credit Union
  • Regional Australia Bank
  • Sydney Mutual Bank and Endeavour Mutual Bank 
  • Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)
  • The Mutual Bank
  • WAW Credit Union

According to the NHFIC, another 10,000 slots will be made available in the middle of the year, from July 2020. 

RELATED ARTICLE: What does 2020 have in store for the property market: Expert predictions 

How does the First Home Loan Deposit Scheme work? 

The First Home Loan Deposit scheme was designed by the government to help Aussie first home buyers purchase a property sooner without some of the added costs that come with having a low deposit. 

Under the scheme, borrowers with a deposit of at least 5% won’t have to pay Lenders Mortgage Insurance (LMI) as the government will guarantee up to 15% of the loan. 

However, the scheme is only available to the first 10,000 approved applications - so it does count to get in before competition for slots grows. 

But remember there are also a whole bunch of eligibility requirements - not only for the borrower but for the property as well - so for more information have a read of our in-depth First Home Loan Deposit Guide. 

RELATED ARTICLE: Why 2020 is the year for first home buyers and property investors 

Want to weigh up your home loan options? Check out our first home loan comparison table or jump over to our first home buyer guides page for more handy information.

First Home Loans 2020 - rates updated daily

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    Fixed Home Loan

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    2.88% p.a.
    fixed 3 years
    2.89% p.a.

    This home loan is available for purchase or refinance, complete with 1, 2 or 3 year fixed rate options. Minimum 10% deposit required.

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    Mozo Experts Choice 2021
    Well Balanced

    Owner Occupier, Principal & Interest, LVR <90%

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    2.52% p.a. variable
    2.55% p.a.

    A great value low rate home loan for variable owner occupiers. Free extra repayments and free redraw facility. No ongoing fees. Option for a split account available. Up to 90% LVR. Winner of the Offset Home Loan Expert's Choice Award for 2021.

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    Back to Basics Special

    LVR<90%, Owner Occupier, Principal & Interest

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    2.59% p.a. variable
    2.60% p.a.

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more. Get a $2,000 cash bonus when you refinance with an eligible Suncorp Bank Home Loan of $250k+. T&Cs & eligibility criteria apply. Minimum 10% deposit.

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    Discount Great Rate Home Loan (Fixed, Owner Occupier, Principal & Interest)

    LVR<80%, over $150k

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    Initial monthly repayment
    1.99% p.a.
    fixed 3 years
    3.35% p.a.

    Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.

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    Low Rate Home Loan

    Owner Occupier, Principal & Interest, 80-90% LVR

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    2.59% p.a. variable
    2.61% p.a.

    Get smart, flexible and cost-effective rates from homeloans.com.au. Complimentary 100% offset account and free online redraw. Unlimited additional repayments. Zero application or annual fees. Fast online application process. Only 10% deposit required.

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*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

**Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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