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The road to home ownership

Almost 3,000 first home buyers have purchased a property with a loan from customer owned banks participating in the First Home Loan Deposit Scheme. Remarkably, this is almost 30 percent of all places released by the Scheme to date.

It’s a positive sign for millennial Australians, with 59 per cent of applicants under 30 years of age. The scheme is also living up to the promise of affordable housing for working Australians:

  • Average income of applicant (single): $66,488 ($125,000 cap)
  • Average income of applicant (couple): $109,410 ($200,000 cap)

The Government initiative allows applicants on low and middle incomes to purchase a home with a deposit of as little as 5 per cent.

Making up 20 of the 27 lenders on the scheme’s panel of lenders, Customer Owned Banking Association (COBA) members commenced offering loans under the scheme from 1 February.

Michael Lawrence, CEO of COBA, said the results spoke to the strength of the Scheme, and the commitment of members in helping Australians realise their dreams of home ownership, even in the midst of the COVID-19 crisis.

“Buying a house is one of the biggest decisions in life, and customer owned banking institutions are specialists at helping their customers make the right decision. They support customers at every step of the way, from initial conversations to the settlement of a property.”

Jamie and Brittanie Crosby would agree. The Perth-based parents of two-month-old Elijah turned to COBA member, P&N Bank, for support.

Working with P&N Mobile Home Loan Specialist, Jessica Nguyen, Jamie and Brittanie discovered they were eligible not only for the First Home Buyers Grant, but also for the FHLDS.

“We were always aware that if we wanted to buy our dream home we would need to save quite a bit,” Jamie said.

“The First Home Loan Deposit Scheme sped up the time it would take for us to enter the property market without having to pay lenders mortgage insurance, which has been great.

“I’ve always banked with P&N, so having all our accounts with the bank made the process even easier.”

Another 10,000 scheme places were made available on the first of July. The Scheme can also be used in conjunction with the Morrison Government’s First Home Super Saver Scheme and HomeBuilder.

Read the full article on the Crosby's home buying experience on the P&N Bank website.

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Ashley Penny
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