Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

rpm logo latest

1,000 FHBs take advantage of scheme

By Cameron Micallef
01 May 2020 | 1 minute read
FHBs take advantage of scheme

Australia’s largest bank has announced that 1,000 first home buyers have now finalised the purchase of their home under the government’s first home buyer loan scheme, with plans to support a further 2,400 secure finances.

The First Home Loan Deposit Scheme (FHLDS) was introduced to help Australians get into a home sooner by providing secured loans for first time buyers with a deposit of just 5 per cent.

CBA announced its 1,000th purchaser, a 32-year-old woman from Victoria, stating that securing a place under the FHLDS allowed her to purchase her new Pakenham home “much sooner” than she anticipated.

Advertisement
Advertisement

“I was saving for a deposit but was a few years off buying a property, so when my lender contacted me and explained that I would be able to purchase a home much sooner by participating in the scheme, I was ecstatic.”

Additionally, the major bank announced that it has assisted a further 2,400 buyers secure their place under the scheme, bringing the total number of first home buyers to be financed by CBA under the FHLDS to 3,400.

The FHLDS aims to provide up to 10,000 first home buyers per year with access to housing finance, with a deposit as low as 5 per cent. 

Under the scheme, the government has agreed to guarantee the difference between the borrower’s deposit and the 20 per cent deposit required to take out a home loan without paying lender’s mortgage insurance.

From 1 January 2020, the two majors were permitted to secure a combined 3,000 places under the scheme, with initial data suggesting that all 3,000 places were filled within the first three weeks of launch.

From 1 February 2020, the majors were allocated a further 2,000 places, and the 25 non-major participating lenders opened up applications for the remaining 5,000 places.

The second major participating lender, NAB, confirmed that all 5,000 allocated major bank-funded loans were reserved “within hours” of the second-round release of places.

Another 10,000 places under the scheme will be released on 1 July 2020, with details on allocation yet to be released.

1,000 FHBs take advantage of scheme
young home buyers sold reb
lawyersweekly logo

ABOUT THE AUTHOR


Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.