Australian borrowers who are applying for any programs under the Home Guarantee Scheme will now be able to explore options with five more lenders being added to the lending panel.
Credit Union SA, Illawarra Credit Union, IMB Bank, Newcastle Permanent Building Society, and Unity Bank are joining the panel of 25 non-major and two major lenders that are already offering the scheme to eligible homebuyers.
The National Housing Finance and Investment Corporation (NHFIC) appointed the new lenders to the non-major lender panel after a competitive procurement process.
“NHFIC administers the scheme on behalf of the government and has appointed the new non-major bank lenders to complement and strengthen the existing panel, improve the reach and accessibility of the Scheme, and support more eligible home buyers to achieve their home ownership goals,” the NHFIC said in a statement.
The new members of the lender panel will start to offer the scheme to their borrowers in July.
The Home Guarantee Scheme is composed of programs that allow homebuyers, particularly first home buyers, to access a competitive loan even with as low as 5% deposit.
One program under the scheme, the Family Home Guarantee, allows single parents to take out a loan with as low as 2% deposit.
The government guarantees the remaining portion of the deposit needed to avoid paying Lender’s Mortgage Insurance (LMI).
The NHFIC initially appointed 27 lenders on the panel of residential mortgage lenders to offer guarantees under the First Home Loan Deposit Scheme. Five more lenders are added to the panel, bringing the number of members to 32 lenders.
Offering the guaranteed loans from 1 July 2022:
Offering the guaranteed loans from 1 January 2020:
Offering the guaranteed loans from 1 February 2020:
Photo by @micheile on Unsplash
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