CommBank announced today that even more home buyers will be able to realise the Aussie dream of owning their own property under the extension to the First Home Loan Deposit Scheme (the Scheme).
From the 21st of October 2020, eligible first home buyers looking to build or purchase a newly built home are able to request a place to join CBA’s waitlist.
As part of the 2020-21 Federal Budget, the Australian Government announced the New Home Guarantee, an additional 10,000 Scheme places specifically for first home buyers purchasing new homes with a deposit of between 5 and 20 per cent of the property’s value.
The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase their first home sooner.
Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase a modest home with a deposit with as little as 5 per cent (lenders criteria also apply). This is because NHFIC guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer’s home loan.
All applications for the First Home Loan Deposit Scheme need to be made directly with one of the Scheme’s participating lenders. NHFIC doesn’t accept applications directly from first home buyers.
Angus Sullivan, Commonwealth Bank Group Executive said: “We have already helped more than 3,000 Australians purchase a house under the Scheme and are extremely supportive of the move to extend this to an additional 10,000 Australians looking to buy their first home.
“We know that saving for a deposit can be difficult. Given the challenges faced by many of our customers over the past few months, we support any initiatives that play a constructive role in helping first home buyers get onto the property ladder and support the broader economic recovery, specifically in the construction industry.
“We are proud to have been a major participant in the Scheme since its inception and have helped more Australians purchase a home under the Scheme than any other lender. One in four Australian home loans are with CommBank and with some of the lowest fixed rates on record our Australian-based call centres and industry-leading processing remain open for business and ready to assist.”
Under the New Home Guarantee, a revised set of property price caps will apply for eligible properties.
For more information on the First Home Loan Deposit Scheme, read this Australia Government fact sheet: https://www.nhfic.gov.au/media/1308/fhlds-fact-sheet-july-2020-final.pdf.
Read more about CommBank and why you should open an bank account them here on my Open an Australian Bank Account post.