The scheme, which was first announced in May, will allow eligible first home buyers to enter the market with a deposit as low as 5% under a special government guarantee.

The National Housing Finance and Investment Corporation (NHFIC) has confirmed that Commonwealth Bank and 25 smaller lenders will provide loans to eligible first home buyers through the scheme, which kicks off 1 January 2020. 

Full list of initial participating lenders for the First Home Loan Deposit Scheme

Major bank lenders:

Non-major lenders:

  • 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 (divisions of Australian Mutual Bank Ltd)
  • Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)
  • The Mutual Bank
  • WAW Credit Union

CBA and NAB to receive 50% of guarantees

Both NAB and CBA will offer guaranteed loans from the scheme’s commencement date of 1 January 2020. The 25 non-major lenders will begin offering guaranteed loans from 1 February 2020. 

The scheme will support 10,000 first home buyers each financial year on a first in, best dressed basis. According to the NHFIC, the non-major lenders will receive no less than 50% of the initial 10,000 guarantees allocated in the current financial year. 

Applications for the scheme are not yet open. Once the scheme commences, applications will only be made through participating lenders. 

Commonwealth Bank Group Executive Angus Sullivan said the bank is excited to help young first home buyers enter the market.

"We understand that saving a deposit for a home can be challenging and we support initiatives like the First Home Loan Deposit Scheme that could potentially save customers thousands and help them enter the property market sooner. We look forward to continuing to work collaboratively with the government and NHFIC on the successful implementation of the scheme," Mr Sullivan said.

CBA says it will not charge eligible first home buyers higher interest rates than equivalent customers outside of the scheme. 

CUA Chief Executive Officer Paul Lewis said the credit union was excited to play a role in helping young Aussies realise their dream of home ownership. 

“In many parts of Australia, particularly major cities like Sydney and Melbourne, increasing property prices have made home ownership an unattainable dream for many people on low and middle incomes," Mr Lewis said.

“The affordability challenge is compounded if first home buyers also need to pay thousands of dollars in lenders’ mortgage insurance. The scheme will offer another pathway to home ownership and help more Australians take steps towards a financially secure future.”

Mr Lewis said CUA hopes to begin offering loans through the scheme from March 2020. 

Last month, Westpac was allegedly axed from being the second major lender to take part in the scheme in the wake of 23 million money-laundering breaches, some of which may have funded child-exploitation in Southeast Asia. 

The scheme, one of Prime Minister Scott Morrison's key pledges at the May 18 election, will allow eligible first home buyers to secure a home loan with a minimum 5% deposit and avoid paying Lenders Mortgage Insurance (LMI). The NHFIC will then guarantee the remaining amount needed to make up the 20% deposit. 

Applicants will be subject to an income threshold of up to $125,000 for singles and a combined income of up to $200,000 for couples provided both are first home buyers.

The NHFIC has launched an interactive online tool to help first home buyers assess their eligibility for the scheme. 

Property price caps will apply under the scheme to reflect the differing median house prices in each of the states and territories.

First home buyers will be able to register their interest in the scheme with NAB from Tuesday 17 December.



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