After a rigorous tender and selection process, local customer-owned P&N Bank has been chosen to join the lending panel for the Federal Government’s new First Home Loan Deposit Scheme offered by the National Housing Finance and Investment Corporation (NHFIC).
From early 2020, eligible first home buyers (FHB) on low and middle incomes stand to benefit from the new Scheme, which will help them take out a mortgage with a minimum 5% deposit and avoid paying lenders mortgage insurance (LMI).
In announcing P&N Bank's participation in the Scheme, P&N Bank General Manager Anna Pearce outlined that the Bank’s selection further underscores its strong capability as a lender in the WA market and its genuine commitment in helping West Australians enter the property market.
“As a strong local brand, P&N Bank was keen to be one of the first lenders to be able to offer this Scheme to assist FHBs.
“ABS Data as at September 2019 outlines that 24% of all new owner occupied borrowings in WA are attributed to FHBs so this Scheme will potentially be life changing for many of those entering the market,” Ms Pearce said.
“The P&N Bank team is so pleased to now be able to assist even more West Australians to purchase a home.
“As a customer-owned bank that puts our members first, we have always been committed to helping West Australians from all walks of life achieve their financial, home ownership and retirement dreams.
"When the Scheme kicks off in early 2020, our mobile and branch lending teams as well as our broker network look forward to offering this new opportunity to FHBs.”
National Housing and Finance Corporation (NHFIC) CEO Nathan Dal Bon said: “We are delighted to have P&N Bank join the panel. We received strong interest from a broad range of smaller lenders. The panel announced today aims to provide the Scheme with geographical reach whilst promoting consumer choice and assisting first home buyers to own their first home sooner.”
As part of P&N Bank’s commitment to the Scheme, it will not charge eligible FHB customers higher interest rates than equivalent customers outside of the Scheme.
(*Source - ABS 5601.0 Lending to households and businesses, Australia, Sep 2019')
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