ANZ and Westpac Could Offer Loans Under Home Guarantee Scheme
27 Jul, 2022
Updated: 23 Dec, 2024
On 25 July 2022, The National Housing Finance and Investment Corporation (NHFIC) requested a proposal of process from ANZ and Westpac, in an effort to get the banks to join its lender panel for the Home Guarantee Scheme. Currently, the scheme is available through two major lenders – CBA and NAB – and 30 non-majors.
Having the major banks on the panel gives potential homebuyers more choice and accessibility. ANZ and Westpac have until 12 August 2022 to submit their response to the NHFIC, after which, they will be evaluated. If successful, they will be added to the lender panel on 30 September 2022.
What Is The Home Guarantee Scheme?
The government introduced the Home Guarantee Scheme to help borrowers with a small deposit qualify for a home loan without paying Lenders Mortgage Insurance (LMI).Typically, to avoid paying LMI, you need a 20% deposit. However, under the scheme, eligible borrowers can avoid LMI even with a deposit as small as 2%, since the government will guarantee up to 18% of the value of the property.
There are two schemes under the Home Guarantee Scheme.
| Details | First Home Guarantee | Family Home Guarantee |
|---|---|---|
| What is it? | It is a guarantor scheme in which the government guarantees loans so borrowers avoid LMI. | It is a guarantor scheme in which the government guarantees loans so borrowers avoid LMI. |
| Who’s it for? | Only for first-home buyers | Single parents with at least one child dependant |
| How many places are available? | 35,000 each year | 5,000 each year |
| What is the minimum deposit required? | 5% | 2% |
| What is the income cap? | $125,000 for singles and $200,000 for couples | $125,000 |
| When is it available? | Available now | Available now |
What Are The Price Caps For The Home Guarantee Scheme?
| Region | 2022-23 Price Caps |
|---|---|
| NSW – Sydney & regional centres (Newcastle, Lake Macquarie & Illawarra) | $900,000 |
| NSW – rest of state | $750,000 |
| VIC – Melbourne & regional centre (Geelong) | $800,000 |
| VIC – rest of state | $650,000 |
| QLD – Brisbane & regional centres (Gold Coast & Sunshine Coast) | $700,000 |
| QLD – rest of state | $550,000 |
| WA – Perth | $600,000 |
| WA – rest of state | $450,000 |
| SA – Adelaide | $600,000 |
| SA – rest of state | $450,000 |
| TAS – Hobart | $600,000 |
| TAS – rest of state | $450,000 |
| ACT | $750,000 |
| Northern Territory | $600,000 |
| Jervis Bay Territory & NorfolkIsland | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
What Are The Benefits of the Home Guarantee Scheme?
- You don’t have to wait and save for a large deposit.
- The two different plans cater to borrowers with different property ownership histories.
- First-home buyers can use the scheme with other grants and concessions
- You can potentially save over $30,000 in LMI fees
To apply for any one plan under the Home Guarantee Scheme, you will need to send your application to a participating lender. We can help you with your application. Call us on 1300 889 743 or enquire online today.
