The Mutual Bank is the only Hunter-based bank participating in the Federal Government’s recently announced Family Home Guarantee and extended First Home Loan Deposit Scheme (FHLDS) and New Home Guarantee.
The Family Home Guarantee is an Australian Government initiative that aims to support eligible single parents with dependants to purchase a new or existing family home. Under the Family Home Guarantee, from 1 July 2021, 10,000 places will be available to eligible single parents over four years to purchase a home with a deposit of as little as 2%.
The New Home Guarantee was introduced last year (2020) as part of the First Home Loan Deposit Scheme. The FHLDS means that first home buyers can apply for a home loan with a deposit as little as 5%, without needing to pay Lenders’ Mortgage Insurance.
Under the 2021-22 Federal Budget announced on 8 May, another 10,000 places will be available for first home buyers under FHLDS, while New Home Guarantee (a scheme for eligible first home buyers purchasing new homes) will be extended with another 10,000 places released. Additionally, the Family Home Guarantee was announced with places in all three Schemes available from 1 July 2021.
The Mutual Bank’s CEO, Geoff Seccombe, welcomed the Scheme announcements.
He said having to save a deposit of only 5%, or even 2% for single parent families, and pay no mortgage insurance, makes it a lot easier for first home buyers and single parent households to achieve the security of buying their own home.
“With high rents and property prices in the Hunter Region, it can be hard to save enough for that deposit,” he said.
“For single parents, with today’s property prices, even saving for a 5% deposit can be tough, so this extra Government help means they can have the security of their own home much sooner.”
“The Mutual Bank welcomes this announcement from the Federal Government which puts homes in reach of single parent families and people looking to get into the market for the first time.”
Mr Seccombe said The Mutual Bank’s team members are the local experts in home loans for first home buyers.
“We have been a strong supporter of the First Home Loan Deposit Scheme and one of the panel lenders from the beginning.”
“We’ve helped many first home buyers get into the property market.”
“And they love banking with a local, member-owned bank that offers great service, and puts profits back into helping members and the Hunter community.”
If you want to know more about these government incentives, including eligibility requirements, or other banking options available to help you get a home of your own, get in contact with The Mutual Bank’s Member Services Team to register your interest on 1300 688 825, themutual.com.au or at your nearest branch.