Queensland Country Credit Union is among just 27 lenders who have been approved to a panel of residential mortgage lenders to offer guarantees under the Australian Government’s new First Home Loan Deposit Scheme, and one of only five banks based in Queensland.
The First Home Loan Deposit Scheme is an new Australian Government initiative that supports eligible first home buyers purchase a home sooner.
The Scheme will provide 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.
Queensland Country Credit Union CEO, Aaron Newman, said the First Home Loan Deposit Scheme would provide a much-needed boost for first home buyers struggling to save the 20 per cent deposit required to avoid paying lenders mortgage insurance fees.
“Often we see that first home buyers have the income and budget to service a home loan and the costs that come with running a home but struggle with being able to save a large deposit on top of these expenses.
“This Scheme will give them a leg up to get started in the property market and start working toward their goal of owning their own home and will save borrowers significant costs associated with mortgage insurance.
“We’re excited to be one of just a few approved lenders to help first homeowners work toward that dream and will work with applicants to set them up for financial success well beyond their deposit through our free Money Mentoring program and SmartBudget product.
“What the guarantee will allow us to do is provide the same competitive rates to eligible low deposit first home buyers as we are able to for those who have built up equity in their existing homes or a larger deposit to purchase a new home.”
The Scheme will support up to 10,000 loans each financial year.
National Housing and Finance Corporation (NHFIC) CEO Nathan Dal Bon said there had been strong interest from a broad range of smaller lenders.
“We are delighted to have Queensland Country Credit Union join the panel. The panel announced today aims to provide the Scheme with geographical reach whilst promoting consumer choice and assisting first home buyers to own their first home sooner.”
While the Scheme opens from 1 January 2020 through two major banks, applicants will need to wait until 1 February to apply for a loan with Queensland Country and other non-major lenders. To find out more on the First Home Loan Deposit Scheme see here.