Major passes FHB scheme "milestone"

by Madison Utley30 Apr 2020

CBA yesterday announced that 1,000 of its customers have purchased a property under the First Home Loan Deposit Scheme (FHLDS) launched by the government four months ago. 

Beyond this segment already in possession of their new home, the major has helped an additional 2,400 borrowers secure a place under the scheme.

At the beginning of April, the customers who snagged a spot but have yet to find a property were informed they could request an extension for another 90 days to enter a contract of sale. 

The extended timeline gives the first home buyers a total of six months to find a property, something the bank hopes brings “peace of mind” their place under the scheme is safe during this difficult economic period.

“There is a lot of interest and uncertainty about the impact the coronavirus will have on the Australian property market so it’s encouraging that we have crossed this exciting milestone in the current environment,” said CBA group executive of retail banking services, Angus Sullivan.

“As Australia's largest home loan lender, our Australian-based call centres remain open for business and we continue to have industry leading processing and turnaround times for home loan applications.”

To date, the National Housing Finance and Investment Corporation (NHFIC) has released 10,000 FHLDS places for this financial year, with 5,000 spots set aside for major banks CBA and NAB - all of which have been reserved. The next 10,000 places will be available from July 2020.

On its website, the NHFIC encourages first home buyers to continue to engage with the major banks even though all their placements are reserved as spots may become available if applicants do not proceed to purchasing a property.

“Whether you are purchasing your first home or looking to buy a new home, we want to reassure customers that we are open for business and here to help them realise their home ownership goals,” Sullivan concluded.