Full house: 26 lenders granted a spot in First Home Loan Deposit Scheme (FHLDS)

Ceyda Erem

12 Dec 2019

redactor/hero-images/1253/full-house_content.jpg

They say when it rains it pours and that’s exactly what’s occured in the home loans industry within the last 24 hours. 

The National Housing Finance and Investment Corporation (NHFIC) has officially announced the full list of lenders which will be participating in the federal government’s First Home Loan Deposit Scheme (FHLDS).

If you weren’t aware of the new upcoming scheme, from 1 January 2020, a selected number of Aussie borrowers with a 5% deposit will be able to dodge Lenders Mortgage Insurance (LMI) - a fee which borrowers must pay when they borrow below 80% of the property’s value - while the government guarantees the remaining deposit amount. 

"Today, the government welcomes confirmation from the National Housing Finance and Investment Corporation (NHFIC) that 27 lenders have been selected, from a wide pool of applicants, to form the initial panel offering guarantee-backed loans under the First Home Loan Deposit Scheme,” said Minister for Housing and Assistant Treasurer, Michael Sukkar

In November, big four bank NAB was the first lender to be given a spot, securing one of the two big bank seats. 

So who took out the second position? It was none other than CommBank, who together with NAB, will be permitted to issue up to 50% of the annual 10,000 guaranteed loans every financial year. 

And the rest? Well without further ado, here are the 25 remaining lenders who will be able to issue the rest of the loans to first home buyers: 

- 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

And according to Sukkar, the wide range of non-bank lenders was no coincidence. 

“The scheme has been deliberately designed to ensure strong representation of smaller lenders on the panel. This will promote competition between the large and small banks, and ensure the Scheme has broad geographic reach, including in regional and remote communities,” he said.

"The composition of the panel should also enable strong activation of mortgage broker channels and promote choice for first home buyers.” 

But if you’re an Aussie ready to snatch up your dream home before the new year, you can head over to our home loan comparison tool to start comparing some of the latest home loan deals or check out some of our first home buyers guidesto make sure up to scratch with all the terminology and processes. 

Compare home loans - rates updated daily

  • Promoted

    loans.com.au

    2.88% p.a. variable

    2.90% p.a.

    $1234

    Product details Close details
    Smart Home Loan

    A low-rate home loan that could save you thousands. No ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount, Limited time only.

    • 2.88% p.a. variable

    • 2.90% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Smart Home Loan

  • Promoted

    UBank

    2.84% p.a. variable

    2.84% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    Free redraw with flexible repayments. Min 20% deposit. Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category^.

    • 2.84% p.a. variable

    • 2.84% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $200,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

  • Promoted

    Athena

    2.84% p.a. variable

    2.80% p.a.

    $1234

    Product details Close details
    Variable Home Loan

    Get the low rate you deserve with Athena, one of Australia's newest direct lenders. No fees and fee-free redraw. The same low rates for new and existing customers. Score loyalty bonus for making repayments. Min 20% deposit.

    • 2.84% p.a. variable

    • 2.80% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Variable Home Loan

  • Promoted

    Macquarie

    3.09% p.a. variable

    3.09% p.a.

    $1234

    Product details Close details
    Basic Home Loan

    Competitive low rate. No application or account management fees. Get the flexibility to split your loan and set different repayment types. Enjoy fee free withdrawals of your savings.

    • 3.09% p.a. variable

    • 3.09% p.a.

    • $0

    • $0.00

    • $400.00

    • yes - free

    • yes - free

    • no

    • 70.00%

    • $150,000

    • $5,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Monthly

    Read our Mozo Review to learn more about the Basic Home Loan

  • Promoted

    IMB Bank

    3.13% p.a. variable

    3.19% p.a.

    $1234

    Product details Close details
    Budget Home Loan

    Start with only 10% minimum deposit. Unrestricted additional repayments and free redraw facility.

    • 3.13% p.a. variable

    • 3.19% p.a.

    • $799

    • $0.00

    • $350.00

    • yes - free

    • yes - free

    • no

    • 90.00%

    • $75,000

    • $5,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Budget Home Loan

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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.

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.