NAB to offer competitive home loans for FHBs in government’s first-home loan deposit scheme

NAB to offer competitive home loans for FHBs in government’s first-home loan deposit scheme
Staff reporterDecember 7, 2020

The National Australia Bank has been announced as the first lender on the lending panel for the government’s first-home loan deposit scheme.

They have committed to not charging eligible customers higher interest rates after the housing stimulus package begins on January 1.

NAB chief customer officer Mike Baird said the bank would update eligible customers in the lead-up to January 1.

Mr Baird said NAB was “proud” it had been selected to partner the government and described it as a “great endorsement” of the bank’s home loan offering.

“This scheme is a fantastic way of helping even more customers, allowing them to potentially save thousands of dollars on their mortgage,” Mr Baird told The Australian.

NAB has been offering special rates for first-home buyers, with a 2.88 per cent annual rate fixed for two years, since 2017.

The NHFIC will supervise the scheme, overseeing rules that permits only two major lenders to be appointed to the lending panel. The big bank will only be entitled to receive up to 50 per cent of the 10,000 guarantees allocated per financial year.

There will also be a range of non-major lenders appointed to the lending panel.

Loan applications for the scheme are not yet open.

Information about the Scheme is available on NHFIC’s website including an online tool to assist prospective first home buyers determine the relevant property price threshold that will apply to any potential purchases. 

Additional eligibility tools are being developed and will be launched publicly.

First-home buyers wanting to buy next year using the new home loan deposit scheme will be limited to properties sold for less than $700,000 in Sydney, $600,000 in Melbourne, $500,000 in Canberra and $475,000 in Brisbane.

There are regional limits too.

The scheme will apply to owner-occupied loans for FHBs with an annual income of up to $125,000 or couples with a combined $200,000 per year.


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