COBA welcomes 10,000 new allocations to First Home Loan Deposit Scheme

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The Customer Owned Banking Association has welcomed the Federal Government’s announcement to increase the First Home Loan Deposit Scheme (FHLDS) by a further 10,000 allocations.

Reserved for new homes and newly built homes, the additional scheme allocations will be available to eligible first home buyers from 6 October 2020 to 30 June 2021.   

“This announcement reflects the outstanding success of the scheme in creating a pathway to affordable home ownership for hard working Australians,” said COBA CEO Michael Lawrence.

“Making up 20 of the 27 lenders on the scheme’s panel of lenders, customer owned banking institutions have played a key role in delivering loans allocated to non-major bank lenders.

“We commend the Government for embedding competition into this Scheme from day one. Ensuring the strong representation and prioritisation of smaller lenders has led to greater choice and outcomes for consumers.

“Customer owned banking institutions have a long tradition of helping first homeowners enter the property market. They have specific products and ways to help buyers.”

Eligible first home buyers will also be able to take advantage of the Morrison Government’s First Home Super Saver Scheme and HomeBuilder, and first home buyers may also be eligible for state and territory grants and concessions.

“Our participating members are excited to continue working with the Federal Government to help more Australians enter the property market while supporting construction jobs for other Australians. They will now focus firmly on the 5,000 loans assigned to non-major bank lenders under this new allocation.”

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 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.

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.