Home Guarantee Scheme helping younger and solo home buyers into property market

National Australia Bank

Australians under 30 and those planning to buy a property solo are the big winners in first home buyer schemes, new NAB data reveals.

With 40,000 new places in the Federal Government’s Home Guarantee Scheme (formerly known as the First Home Loan Deposit Scheme) opening today, it can be revealed NAB solo buyers purchased 63 per cent of houses in the Scheme in the past six months compared to 49 per cent of non-Scheme purchases.

Of the 63 per cent of First Home Guarantee single borrowers, 59 per cent were female and 41 per cent were male.

21 per cent of NAB customers eligible for the First Home Guarantee (FHG) are under 30, compared to 17 per cent of non-FHG customers.

NAB Executive Home Ownership, Andy Kerr said because of the Scheme, both younger and solo buyers are getting a foot on the property ladder sooner.

“People going at it alone shouldn’t be disadvantaged and we are seeing the Scheme help them buy a property,” Mr Kerr said.

“With a backdrop of house price growth slowing and in Sydney and Melbourne where it is going backwards, there is some relief in sight for first home buyers.

“Flexible working is providing first home buyers more choice of locations than ever before, with regional purchases in the Scheme up two per cent compared to the same time last year.

“In an uncertain market, it has never been more important to have confidence to buy. Getting a fast decision from your bank on a loan is absolutely crucial.

“Around 50 per cent of our eligible customers can now get a decision within 24 hours and 35 per cent of those are getting unconditional approval within an hour – that’s faster than getting your internet set up in the new home.”

Sydney car salesman Rihan Nasser is due to move into the villa unit purchased through the Home Guarantee Scheme in August 2021.

“I had been looking at what I would need to do to save 20 per cent, how much I’d need to put away each week, and it would have definitely taken me years. The Scheme fast tracked the process by maybe two, three or four years and made it easier to come up with the deposit to buy,” Mr Nasser said.

“Once I knew I needed five per cent, I knuckled down on the saving. It took me about a year and a half. At the same time, my NAB banker was talking to me about the process and made it less daunting.

“I would 100 per cent recommend the Scheme. It made it so much easier.

“I was also approved for the loan in less than a day so between the Scheme and with the quick approval, it was the perfect combination. I had been with another bank before and now I’ve switched completely over to NAB.”

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