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

By Polly Fleeting ·

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 - page last updated October 27, 2020

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