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More than 1,000 First Home Loan Deposit Scheme borrowers have purchased a property with a loan from customer-owned banking institutions, it has been revealed.
Non-major lender participants in the First Home Loan Deposit Scheme (FHLDS) began offering the new loans in February – enabling eligible first home buyers to purchase a home with a deposit of 5 per cent without needing to pay for lender’s mortgage insurance (LMI).
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According to new figures released by the Customer Owned Banking Association (COBA), 20 of the 27 lenders on the scheme’s panel are customer-owned – with these lenders now having helped more than 1,150 borrowers purchase their first property.
Michael Lawrence, CEO of COBA, commented: “COBA is delighted by this strong performance after only three months, which includes homes that have settled or where a sale contract has been signed. Our members are also supporting many more applicants who are in the process of purchasing a property.
“Buying a house is one of the biggest decisions in life, and customer-owned banking institutions are specialists at helping their customers make the right decision. They support customers at every step of the way, from initial conversations to the settlement of a property.
“The scheme is well designed for low and middle-income earners, providing a pathway to home ownership amid the challenges of COVID-19.”
The government had allocated 10,000 places under the FHLDS, with another 10,000 scheme places being made available from July 2020.
