Can home buyers still apply for the deposit scheme?

By Gerv Tacadena

Borrowers who are looking to take advantage of the additional slots for the deposit scheme are encouraged to apply through a participating lender before 30 June.

According to the National Housing Finance and Investment Corporation (NHFIC), the 1,800 unused slots from the 2019-20 financial year will be rolled over into the current financial year.

The NHFIC said that the unused guarantees can be used for the purchase of new or existing homes. The standard requirements will still apply for these additional spots for the scheme.

On 1 July, another 10,000 spots will be available for the next financial year.

A recent report from the Customer-Owned Banking Association (COBA) showed that the deposit scheme has boosted the activity in the alternative banking sector.

The sector posted a 1.32% home loan growth over the December quarter, higher than the average gain the whole banking system recorded at 0.57%.

According to COBA's figures, more than 8,300 first-home buyers have now purchased a property with a loan from one of the 20 customer-owned banking institutions on the scheme’s panel of lenders.

Borrowers who would like to apply for the scheme can do so through these participating lenders:

Major Banks:

National Australia Bank
Commonwealth Bank of Australia

Non-major Lenders:

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