Strong Interest From Lenders in First Home Loan Deposit Scheme
The National Housing Finance and Investment Corporation (NHFIC) has received strong interest from lenders in response to a three-week market sounding process regarding potential participation in the Federal Government’s new First Home Loan Deposit Scheme that concluded yesterday.
More than 100 residential mortgage lenders and registered brokers participated in the market sounding process.
NHFIC CEO Nathan Dal Bon said it was particularly encouraging to see interest coming from a broad range of lenders encompassing a wide geographic spread.
“This market sounding process was an important step in preparation for implementing the First Home Loan Deposit Scheme on 1 January next year, subject to the passage of legislative amendments currently before the Parliament,” Mr Dal Bon said.
“We were pleased to see such a broad range of market participants engage with NHFIC throughout this process.
“Residential mortgage lenders of all sizes and types from right around the country, with significant regional and metropolitan reach, participated in the market sounding.
“NHFIC has so far received 23 responses to the Market Sounding Scheme Features Paper and we are now reviewing this valuable feedback as we move into the next phase of developing and implementing the Scheme.”
The market sounding process forms part of a broader consultation NHFIC has been undertaking, which will continue in the coming period.
The Scheme is part of the Federal Government’s action to help more first home buyers purchase a home more quickly.
Legislative amendments to establish the Scheme were introduced to Parliament on 12 September 2019. Subject to the passage of these amendments, NHFIC intends to commence a procurement process which it will use to establish a panel of lenders to participate in the Scheme. NHFIC’s Investment Mandate is also in the process of being updated and is expected to be released shortly for public consultation.
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