The First Home Loan Deposit Scheme (FHLDS) has boosted the home loan growth in the customer-owned banking sector, according to the Customer Owned Banking Association (COBA).
The sector has posted a gain of 1.32% over the quarter, more than double the average increase for the overall banking system at 0.57%.
Michael Lawrence, CEO of COBA, said the FHLDS scheme is a substantial contributor to this growth, as it encouraged young buyers to enter the market and explore lending options.
"More than 8,300 first home buyers have now purchased a property with a loan from one of the 20 customer owned banking institutions on the scheme’s panel of lenders, he said.
Further, the reissuance of around 1,800 unused guarantees from the previous financial year will provide more aspiring buyers an opportunity to break into the market.
"The scheme has allowed borrowers with deposits as little as 5% to purchase a home. It’s an outstanding result, and for scheme applicants building or purchasing a new property, there’s scope to explore even further savings through the $25,000 HomeBuilder grant and other state-based incentives," Lawrence said.
Lawrence highlighted that the customer-owned banking sector has been able to provide support to potential home buyers even with the challenges caused by the COVID-19 pandemic.
"Going the extra mile for customers is what our sector does best. This is reflected in innovations in home lending," he said.