Barnaby Joyce

Joyce reflects on first home ahead of deposit scheme rollout

18 Dec 2019

Member for New England, Barnaby Joyce, has welcomed the recent confirmation of 27 lenders selected to form the initial panel offering guarantee-backed loans under the Coalition Government’s First Home Loan Deposit Scheme.

 
The Scheme provides a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5 per cent. The Scheme will support up to 10,000 loans each financial year, starting from 1 January 2020.
 
Mr Joyce reflected on his personal story of home ownership and said the Government was committed to helping make the same dream a reality for more young Australians in his electorate.
 
“Buying their first home is one of the biggest but most rewarding decisions people will make early in their lifetime,” Mr Joyce said.
 
“I remember my first home at Werris Creek which I purchased for a modest $67,000 in 1994 and the sense of accomplishment I felt.
 
“Prospective first home owners are ambitious but often lack the capital to fund a deposit. That’s why the Government is stepping in to bridge the divide and serving as guarantor to help them get a foot in the door to own their first home, sooner.”
 
The National Australia Bank (NAB) and Commonwealth Bank of Australia (CBA), together with 25 non?major lenders have been appointed as participating lenders in the Scheme.
 
Importantly, all lenders have committed not to charge eligible customers higher interest rates than equivalent customers outside of the Scheme.
 
The Scheme has been warmly welcomed by major industry peak bodies, and the composition of the initial lending panel reflects the industry’s confidence in the Coalition Government’s plan to assist first home buyers.
 
Further, 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.
 
The composition of the panel should also enable strong activation of mortgage broker channels and promote choice for first home buyers.
 
Consistent with National Housing Finance and Investment Corporation’s (NHFIC) Investment Mandate, the non-major lenders will receive no less than 50 per cent of the 10,000 guarantees allocated per financial year.
 
Applicants will be subject to eligibility criteria, including having taxable incomes up to $125,000 per annum for singles and up to $200,000 per annum for couples and eligible dwelling price thresholds.
 
Further information about the Scheme is available on NHFIC’s website including online tools to find relevant dwelling price thresholds.
 
The full list of initial participating lenders is:
 

Major bank lenders:

National Australia Bank

Commonwealth Bank of Australia  

 

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

 

(ENDS)

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