Some of Australia’s biggest banks have released statements in support of the provisions in today’s Federal Budget to help single parents get onto the property ladder.
The Family Home Guarantee Scheme is set to offer 10,000 single parents the chance to buy a home by cutting the amount of deposit required to just 2% in some case, with the Government stepping in to cover as much as 15% of the property price.
The scheme will only apply to those earning less than $125,000 a year and is designed to help single parents who could not reasonably expect to save for a deposit to buy a family home. It is very similar to the pre-existing First Home Loan Deposit Scheme, which will be extending in the Federal Budget.
Banks have been effusive in their support for the new provisions.
“We are strong supporters of the (First Home Loan Deposit) Scheme and have seen first-hand how it has helped thousands of Australians purchase their first home earlier than they thought possible,” said NAB Group Executive Personal Banking Rachel Slade.
“Customer interest has been beyond our expectations from day one. We’re excited by the new initiative for single parents, recognising that buying a home is often a major challenge for Australians on a single income. We expect the Family Home Guarantee will provide hope and build confidence for single parents to enter, or in some cases re-enter, the property market.”
CBA CEO Matt Comyn added: “We know how challenging it can be for single parents to support their family and save for a deposit for a home. This announcement will come as a welcome relief for hard working single parents, particularly those working in essential services such as education, health care and public safety, looking to buy their first home or re-enter the property market.
Michael Lawrence, CEO of the Customer Owned Banking Association (COBA) also welcomed the news, including the extension to FHLDS.
"Customer owned banking institutions are the original peer-to-peer lenders, helping thousands of Australians of all backgrounds to buy a home by understanding them and tailoring products for them," he said.
"Our customer-first service means it is no coincidence that the majority of FHLDS lenders are customer owned banking institutions."
"We commend the Government for embedding competition into the successful FHLDS. Ensuring the strong representation and prioritisation of customer owned lenders has led to greater choice and outcomes for consumers."