From 1 July, Westpac will offer mortgages to Australians purchasing or building a home through the Australian Government’s Home Guarantee Scheme.

The scheme sees the government effectively backing a portion of a buyer's home loan, allowing them to avoid paying Lenders’ Mortgage Insurance (LMI).

Westpac is the third major bank to jump on board the scheme, with Commonwealth Bank and NAB already offering it to borrowers.

“We are delighted to be part of the Australian Government’s Home Guarantee Scheme," Westpac consumer and business bank CEO Chris de Bruin said.

“Saving a 20% deposit is one of the many challenges people face when trying to get a foot on the property ladder, particularly for first home buyers or single parents."

The scheme offers three guarantees to would-be home buyers:

  • First Home Guarantee
    The First Home Guarantee allows eligible first home buyers to snap up a property with as little as a 5% deposit.
  • Family Home Guarantee
    Supports eligible single parents and guardians to buy a home with as little as 2% deposit.

“We are also pleased to be able to support friends and family members getting together to buy their home under the new changes to the scheme,” Mr de Bruin said.

That change, as well as others allowing permanent residents and Aussies who haven’t owned a home in the last 10 years access to the scheme, will come into play on 1 July.

For now, only Westpac and RAMS customers will be able to access the guarantees through the bank. They will become available across Westpac Group’s other banking brands later this year, such as Bank of Melbourne, St George, and BankSA.

The bank is currently offering those applying for Westpac home loans supported by the Regional First Home Buyer Guarantee or Family Home Guarantee up to $2,000 cash back on Westpac home and contents insurance policies, underwritten Allianz.

Home Guarantee Scheme helps 100,000 Aussies buy homes

According to the National Housing Finance and Investment Corporation (NHFIC), more than 100,000 Australians have now used the scheme to buy or build their own home.

Since its inception in 2020, it has supported 34,000 regional Australians and 20,000 key workers into property ownership.

"As a government organisation, we support Australians across the housing spectrum from those renting in community housing, through to Australians with the goal of homeownership,” NHFIC CEO Nathan Dal Bon said.

“We look forward to helping more Australians over the coming years into homes sooner under the scheme.”

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by Tierra Mallorca on Unsplash.



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