Customer owned banks hit First Home Loan Deposit Scheme milestone

By Tom Watson · · 2 min read
Fact Checked
Advertiser disclosure

Over 1,000 Australian first-time buyers have already purchased homes this year under the Federal Government’s First Home Loan Deposit Scheme (FHLDS) using a customer owned bank. 

That’s according to new figures released by peak body COBA (the Customer Owned Banking Association), which show that 1,150 first home buyers have used one of their member institutions to take out a home loan as part of the initiative. 

The scheme, which kicked off on January 1, allows first home buyers to purchase a property with a deposit as low as 5% without needing to pay Lenders Mortgage Insurance (LMI) - usually a requirement for low deposit mortgages. 

COBA chief executive, Michael Lawrence said that the number of participants was encouraging, especially given the challenges thrown up by COVID-19 in the past few months. 

“COBA is delighted by this strong performance after only three months, which includes homes that have settled or where a sale contract has been signed. Our members are also supporting many more applicants who are in the process of purchasing a property,” he said.

“Buying a house is one of the biggest decisions in life, and customer owned banking institutions are specialists at helping their customers make the right decision. They support customers at every step of the way, from initial conversations to the settlement of a property.”

Customer owned banks such as Bank Australia, Defense Bank and Gateway Bank represent 20 of the 27 lenders participating in the scheme and have a share in 5,000 of the 10,000 spots available to non-major lenders. The remaining 5,000 places are allocated to the Commonwealth Bank and NAB. 

Last week, CommBank announced that 1,000 of its customers had purchased a property under the scheme, while NAB is yet to provide any figures. 

First home buyers will also have access to 10,000 new spots which will open as of July 1 for the 2020/21 financial year. 

RELATED: Neobank 86 400 slashes home loan rates, introduces $2,000 cashback offer

For more information about the FHLDS, including a full list of the participating members, check out our comprehensive First Home Loan Deposit Scheme guide. 

Otherwise to start comparing home loans for yourself, check out the hot offers in the table below, or head over to our home loan comparison table for even more deals.

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 14 October 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

Promoted

  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.84 % p.a.
    Fixed 1 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

image of houses

Need help with your Home Loan?

Whether you're looking to purchase a new home or refinance your existing loan, our friends at Lendi can help! Lendi’s expert advice is completely free of charge.

Learn more

* 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. You can change the loan amount and term in the input boxes at the top of this table. 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.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Compare home loans