HomeMedia & ResourcesMedia ReleasesCOBA members provide a helping hand to key workers through FHLDS

COBA members provide a helping hand to key workers through FHLDS

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Key workers are among a broad cross-section of working Australians obtaining loans from customer owned banking institutions participating in the First Home Loan Deposit Scheme.

A new report by the National Housing Finance and Investment Corporation has provided insights on the first six months of the Scheme, from 1 January to 30 June 2020. Michael Lawrence, CEO of the Customer Owned Banking Association, said it was pleasing to see the Scheme appeal to working Australians, especially key workers on the frontline of essential services in our community.

“It is encouraging to see key workers account for one-in-six home buyers using the Scheme, with teachers the largest group, followed by nurses, defence force personnel, firefighters, police and childcare workers,” said Mr Lawrence.

“Home ownership is a challenge for Australians on moderate incomes, but the Scheme is delivering clear outcomes for housing affordability. Half of Scheme guarantees were issued to single buyers with taxable incomes of $60,000 to $80,000, while couples were concentrated in the $90,000 to $125,000 earnings bracket. These are both substantially below the income thresholds for the Scheme.

“Many of our members on the panel have a long and proud heritage in supporting their respective sectors, including the Australian Military Bank, Defence Bank, P&N Bank, Police Bank, and the Teachers Mutual Bank. Their deep insights into the livelihoods of customers contribute to more personalised services.

“It is also pleasing to see the broad geographic representation of the Scheme, with almost 38 per cent of purchased properties located in regional areas. Our members make up 20 of the 27 lenders on the participating panel, which is a significant factor in the Scheme gaining traction in large and small communities across the country.”

The First Home Loan Deposit Scheme is a Government initiative to support eligible first home buyers purchase a home sooner. It does this by providing a guarantee to the lender that allows eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5 per cent. Another 10,000 Scheme places were made available from July 2020.

List of customer owned banking institutions on the FHLDS panel of lenders

Australian Military Bank, Bank Australia, Bank First, Bank of us, Beyond Bank Australia, Community First Credit Union, CUA, Defence Bank, Gateway Bank, G&C Mutual Bank, People’s Choice Credit Union, Police Bank (including the Border Bank and Bank of Heritage Isle), P&N Bank, QBANK, Queensland Country Bank, Regional Australia Bank, Sydney Mutual Bank and Endeavour 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.


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