The National Housing Finance and Investment Corporation (NHFIC) is pleased to announce that, following a competitive procurement process, it has appointed the National Australia Bank (NAB) as the first participant on an initial panel of residential mortgage lenders to offer guarantees under the Australian Government’s new First Home Loan Deposit Scheme, commencing 1 January 2020.
NHFIC has also received a strong response from other lenders to the Request for Proposal (RFP). NHFIC anticipates announcing the other successful panel participants shortly, subject to the finalisation of contract negotiations.
NHFIC’s Investment Mandate permits up to two major lenders to be appointed to the panel and to receive up to 50 per cent of the 10,000 guarantees allocated per financial year. There will also be a range of non-major lenders appointed to the panel in due course.
In accordance with the terms of the RFP, panel members will be selected on the basis of a range of criteria including the competitiveness of their home loan offering, geographic reach and readiness to meet Scheme implementation timelines.
In support of the Scheme and NAB’s commitment to first home buyers, NAB will not charge eligible customers higher interest rates than equivalent customers outside of the Scheme. NAB has also committed to being ready to offer guarantees from the Scheme’s commencement date of 1 January 2020.
Applications for the Scheme are not yet open. Once the Scheme commences, applications will be lodged through participating lenders and their brokers. NHFIC will not accept applications directly.
Information about the Scheme is available on NHFIC’s website including an online tool to assist prospective first home buyers determine the relevant property price threshold that will apply to any potential purchases.
M: 0407 294 620