Australian First Mortgage announced it will now accept loan applications as part of the government’s National Rental Affordability Scheme (NRAS).
The government is hoping the initiative will stimulate the supply of 50,000 affordable houses within Australia.
To be eligible, applicants must rent out properties to mid to low income households, at 20% below the market rate.
Successful applicants will receive an unspecified incentive from the government.
First Mortgage has said it will accept applicants with an LVR of up to 90%, although properties must be “leased or managed to an affordable housing consortium approved by AFM
, and the lender,” it said.