NHFIC is commencing a Request for Proposal (RFP) process to refresh its major bank lender panel, and intends to add one or two new major bank lenders to the major bank lender panel from 30 September 2022.
New major bank lenders will be required to offer the First Home Guarantee (FHBG), previously the First Home Loan Deposit Scheme (FHG), the Family Home Guarantee and any other Guarantees that may be added in the future by the Government to the Home Guarantee Scheme (HGS or Scheme).
About the Scheme
NHFIC is responsible for implementing the Government’s Home Guarantee Scheme which includes:
The First Home Guarantee, which aims to assist eligible first home buyers enter the housing market sooner.
The Family Home Guarantee, which aims to assist eligible single parents with at least one dependent child in purchasing a family home, regardless of whether that single parent is a first home buyer or a previous homeowner.
Since commencement in 2020, the Scheme has helped more than 61,000 Australians purchase or build a home, with a significant proportion being women and key workers.
The administration of the Scheme is undertaken by panel lenders, comprising major bank lenders and non-major lenders. Currently there are 2 major bank lenders and 30 non-major lenders.
Context for this RFP
NHFIC completed a review in 2021 of Scheme performance and opportunities, conducted by an independent adviser. The review concluded the Scheme was being operated effectively, that the existing lender panel had successfully achieved the Scheme’s objectives and recommended no change to the existing lender panel.
The review recommended expanding the lender panel to continue achieving the Scheme’s policy objectives and strategic opportunities. Input from the review was used to guide the design and format of the RFP process.
Recent amendments to NHFIC’s Investment Mandate removed the limit of 2 major bank lenders on the lender panel, allowing the major bank lender RFP process to commence. A competitive procurement process to expand the non-major lender panel occurred earlier this year with 5 additional non-major lenders added to the lender panel from 1 July 2022.
NHFIC is committed to operating the Scheme in a responsible and commercial manner, consistent with the principles and requirements set out in its Investment Mandate, as well as its purpose to improve housing outcomes for Australians.
NHFIC has engaged external advisers to support the RFP process to ensure fairness. These advisers include Gilbert + Tobin and the Australian Government Solicitor.
