First Home Loan Deposit Scheme
The Federal Government has announced it will introduce a First Home Loan Deposit Scheme to support eligible first home buyers purchase a home faster.
The Scheme is expected to commence on 1 January 2020 and will be administered by NHFIC.
The Parliament of Australia passed legislative amendments to give effect to the Scheme on 15 October 2019 (see the APH website here)
- Please note, applications for the Scheme are not yet open.
- NHFIC will provide further information about the detail of the Scheme including confirmed eligibility criteria, property price caps, participating financial institutions, application and assessment processes, and updates on implementation of the new Scheme in due course.
- NHFIC is also consulting with financial institutions and other key stakeholders leading up to the commencement of the scheme.
Market sounding process for lenders
In anticipation of the commencement of the Federal Government’s new First Home Loan Deposit Scheme, NHFIC has been undertaking detailed consultations with lenders regarding their potential participation in the Scheme.
NHFIC has sought feedback from lenders on implementation of the Scheme via a market sounding process. This market sounding was the pre-cursor to a procurement process which will be used to establish a panel of lenders to participate in the Scheme. It builds on initial stakeholder consultations undertaken to date.
All residential mortgage lenders were welcome to participate in the market sounding process. NHFIC made a Scheme Features paper available to lenders for the purposes of the market sounding and encouraged feedback on the points it identified for consultation.
Submissions to the market sounding process closed at 5pm on Thursday 3 October.
NHFIC received strong interest from the market with more than 100 residential mortgage lenders and registered brokers participating in the market sounding process.
To date, 27 responses to the Market Sounding Scheme Features Paper have been received and NHFIC is now reviewing this valuable feedback as we move into the next phase of developing and implementing the Scheme.
NHFIC would like to thank all participants for their input.
NHFIC’s Investment Mandate is also in the process of being updated and is expected to be released shortly for public consultation.
Please follow us on Twitter and LinkedIn for further updates as they are available.