First Home Loan Deposit Scheme: 1,000 NAB customers buy property

By Olivia Gee · · 3 min read
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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 loanConditionsRate reductionNew rate
NAB Base Variable Rate Home LoanOnly for owner occupiers paying back principal and interest, with a maximum LVR of 80%15 basis points2.69% (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 points2.29% (4.25% comparison rate*)
NAB Tailored Home Loan (Fixed, Choice Package), Owner OccupierFor a 2-year term, paying back principal and interest, with a maximum LVR OF 95%10 basis points2.19% (comparison rate 4.02%*)
NAB Tailored Home Loan (Fixed, Choice Package), InvestorFor a 2-year term, paying back principal and interest, with a maximum LVR of 90%10 basis points2.49% (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.

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Last updated 15 October 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    6.14 % p.a.
    Fixed 4 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $4,106
    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.

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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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