First Home Loan Deposit Scheme: 1,000 NAB customers buy property
Today NAB announced the major milestone of 1,000 customers purchasing property through the First Home Loan Deposit Scheme (FHLDS).
The scheme aims to help first home buyers get a foot in the property ownership door by allowing those with as little as a 5% deposit to take out a home loan without having to pay Lenders Mortgage Insurance (LMI). This is enabled by the Federal Government guaranteeing up to 15% of the deposit.
It was launched at the beginning of the year with 10,000 applications open to eligible borrowers across 27 financial institutions. Commonwealth Bank, which is the only other major lender involved, saw 1,000 customers purchase homes via the FHLDS in April, while the 20 customer owned banks involved in the scheme collectively passed this milestone in May.
After 1 July, additional loans will be available under the scheme, with NAB offering up to 5,000 each financial year.
NAB group executive, personal banking, Rachel Slade said they’re seeing a diverse customer base reaching their property ownership goals through the scheme despite the economic impacts of the pandemic.
“We’re seeing both young homebuyers in their 20s or 30s and customers in their 50s buying their first property,” Slade said.
“It’s great to see so many Australians purchase their first home sooner than they expected, even at a time when the coronavirus crisis has impacted the housing market.”
NAB variable and fixed home loan rates drop
Alongside this announcement, NAB also dropped rates across a number of its home loan offerings today. Check out some of the changes below.
| Home loan | Conditions | Rate reduction | New rate |
|---|---|---|---|
| NAB Base Variable Rate Home Loan | Only for owner occupiers paying back principal and interest, with a maximum LVR of 80% | 15 basis points | 2.69% (2.69% comparison rate*) |
| NAB Tailored Home Loan (Fixed) | Only for owner occupiers paying back principal and interest for a 2-year term, with a maximum LVR of 95% | 10 basis points | 2.29% (4.25% comparison rate*) |
| NAB Tailored Home Loan (Fixed, Choice Package), Owner Occupier | For a 2-year term, paying back principal and interest, with a maximum LVR OF 95% | 10 basis points | 2.19% (comparison rate 4.02%*) |
| NAB Tailored Home Loan (Fixed, Choice Package), Investor | For a 2-year term, paying back principal and interest, with a maximum LVR of 90% | 10 basis points | 2.49% (comparison rate 4.55%) |
If you are approaching the first rung on the property ladder, see if you’re eligible for the First Home Owners Grant in your state or territory. Then start investigating home loans with the options below.
Home loan comparisons on Mozo
-
Fixed Home Loan
- Owner Occupier
- Principal & Interest
- LVR <95%
Go to site- Interest rate
-
5.69
%
p.a.
Fixed 3 years
- Comparison rate
-
6.28
%
p.a.
- Initial monthly repayment
-
$4,174
Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.
- interest rate
-
1 year - 6.19% p.a. (6.45% p.a.*)
2 years - 5.69% p.a. (6.34% p.a.*)
3 years - 5.69% p.a. (6.28% p.a.*)
4 years - 5.89% p.a. (6.30% p.a.*)
5 years - 5.89% p.a. (6.27% p.a.*)
- Fixed loan revert rate
-
6.34% p.a.
- Upfront fees
-
$799
- Ongoing fees
-
$6.00 monthly
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$4,174
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
- Special Offers
-
$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
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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. 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.
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