Gateway Bank chosen to join new Government Scheme lending panel
Gateway Bank is excited to announce that it will soon be able to help more Australians get the keys to their first home after being chosen to join the panel of lenders for the First Home Loan Deposit Scheme.
The customer-owned bank was selected by the Federal Government’s National Housing Finance and Investment Corporation (NHFIC) to join the new initiative after being judged on an extensive range of important lending criteria that included competitiveness of loan products and their various interest rates and fees, regional reach and general customer care and experience.
“We are delighted to have Gateway Bank join the panel. We received strong interest from a broad range of smaller lenders. 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,” said NHFIC’s CEO Nathan Dal Bon.
“Gateway Bank has always supported a fair system for first home buyers and the First Home Loan Deposit Scheme is the ideal platform to help these Australians get into their home sooner,” said Gateway Bank’s Head of Products and Pricing, Mr Ryan Holman.
“Being chosen as a participating lender makes us both proud and privileged to be able to support even more couples, singles and families to realise their home ownership dreams.”
The First Home Loan Deposit Scheme will support up to 10,000 home loans each financial year.
Customers who have saved at least 5% of the likely purchase price of their property can apply to obtain a government guarantee.
While still needing to borrow up to 95% of funds, the guarantee removes the need for borrowers to pay additional insurance (Lenders Mortgage Insurance).
“Typically, these first home buyers are committed savers, but it can still take many years for them to get to the ‘golden’ 20% deposit,” said Mr. Holman.
“The FHLDS requiring just a 5% deposit will allow us to help more people and, because of the way it is structured, it may also mean additional savings on their mortgage.”
Low- and middle-income earners will be deemed eligible for the Scheme if they meet the eligibility requirements including annual income thresholds (up to $125,000 p.a. for singles and up to $200,000 p.a. for couples) and are planning to purchase a “modest” home that is priced within a property price threshold that varies across capital cities and regional areas.
The Federal Government commenced a procurement process earlier this year to identify the lenders best-placed to participate and, once underway, will be overseen by the NHFIC.
“Being administered in this way makes it very transparent and accountable especially on fees and charges which Gateway Bank has already been pleased to confirm that it won’t be increasing for the scheme,” said Mr. Holman.
“First home buyers using the Scheme through Gateway Bank will get the same competitive products and interest rates as customers with a 20% deposit.
“We are keen to get started and work with first home buyers through our range of home loan products, like our Family Pledge offer that allows customers to secure part of their loan against their parent’s home, to help them find the right one for them.”
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For further information please contact: Georgina McGuinness
0488 247 777
About Gateway Bank
Gateway Bank is one of Australia’s leading customer-owned institutions. Founded in 1955 and with its national headquarters in Sydney, Gateway Bank provides award-winning products and services to more than 30,000 members around Australia. Gateway Bank has over $1 billion in assets under management with a focus on offering premium home loans, low rates and fees and flexible insurance options.
It is committed to putting people before profits with 100% of profits used to benefit its customers. In 2019, it was awarded the Mozo Experts Choice Award for its Low Rate Essentials for Low Cost Home Loan and Investor Home Loan. It also received the CANSTAR Outstanding Value 2019 for its Investment Variable Home Loan receiving 5 stars for Outstanding Value.