Customer-owned banks take the spotlight as First Home Loan Deposit Scheme enters second month

The government’s First Home Loan Deposit Scheme is due to be rolled out February 1, and customer-owned banks are experiencing a surge in interest.

Of the 27 names which make up the scheme’s panel of lenders, 20 are customer-owned. They will be competing for 5,000 of the 10,000 home loans that have been allocated to non-major bank lenders as part of the scheme.

Michael Lawrence, Chief Executive Officer of the Customer Owned Banking Association, said customer-owned banks have a long tradition of helping first homeowners enter the property market, thanks to their competitive pricing and dedicated customer service.

“Customer owned banking institutions have been helping prospective first home buyers with assembling documentation and preparing applications to help with timely lodgements from 1 February,” he said. 

What is the First Home Loan Deposit Scheme?

The First Home Loan Deposit Scheme is a government initiative which will help 10,000 eligible first home buyers purchase a home sooner by guaranteeing up to 15% of their home loan, allowing them to avoid paying Lenders Mortgage Insurance altogether.

A lack of a sizable deposit has long been one of the main barriers for Australians looking to buy a home. By allowing Australians to purchase a home with just a 5% deposit, the scheme hopes to help low and middle income earners who have up till now felt priced out of the property market.

Already 3,000 spots have been snapped up within a single week in January, and pre-approvals are expected to continue at a rapid pace. The good news is that a further 10,000 spots will be made available mid-2020.

“With the scheme going on, the area of the market that it occupies could start to move up, and this may pressure other first home buyers to hop onto the bandwagon as well,” said Mozo’s property expert, Steve Jovcevski. 

Which customer-owned banks have signed on?

So which customer-owned institutions have been selected by the National Housing Finance and Investment Corporation (NHFIC) as panellists for the First Home Loan Deposit Scheme? The list includes the following:

  • Australian Military Bank
  • Bank Australia
  • Bank First
  • Bank of us
  • Beyond Bank Australia
  • Community First Credit Union
  • CUA
  • Defence Bank
  • Gateway Bank
  • G&C Mutual 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 Bank
  • Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)
  • The Mutual Bank
  • WAW Credit Union.

If you’d like to see how the above lenders stack up against larger lenders, head over to our home loan comparison page for an idea. And if you’re after more tips on entering the property market, be sure to browse our first home buyer guides.

Home loan comparisons on Mozo - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Fixed Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    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.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Well Balanced

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    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.

    Go to site
    Details
  • placeholder
    Back to Basics Special

    LVR<90%, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    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.

    Go to site
    Details
  • placeholder
    Discount Great Rate Home Loan (Fixed, Owner Occupier, Principal & Interest)

    LVR<90%, over $150k

    interest rate
    comparison rate
    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.

    Go to site
    Details
  • placeholder
    Low Rate Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    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.

    Go to site
    Details

*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.

^See information about the Mozo Experts Choice Home Loans 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.