Family Home Guarantees available at NAB from 1 July

From Thursday 1 July 2021, 10,000 Family Home Guarantees (FHG or Scheme) will be available to eligible single parents and NAB is once again proud to back this Government scheme.

Your customers can use the Family Home Guarantee to build a new home or buy an existing home with as little as a 2% deposit. Both first home buyers and previous homeowners can apply to purchase an owner-occupied property as their principal residence.

Important information

Applicants must be an eligible single parent with at least one dependent child. 

2% deposit must be a ‘genuine contribution’ as per NAB credit policy.

There are no restrictions on prior home ownership, but applicants can’t currently own a home.

Property must be the buyer’s primary place of residence.

Limited to Australian Citizens, aged 18 or over with income of $125,000 or less as declared in their FY21 (ending 30 June 2021) income tax return.

Contracts must be dated on or after 1 July 2021, except land contracts which may be dated at any time.

Note: While the National Housing and Finance Investment Corporation (NHFIC) can support customers with a minimum 2% deposit, any deposit requirements set out by the vendor must be complied with and provided by the customer. Neither NAB nor NHFIC will cover upfront costs (including stamp duty, conveyancing, etc.).

Applying with a Family Home Guarantee

When applying for a Government Guarantee at NAB via ApplyOnline, remember to tick the ‘Are the applicant(s) applying for the First Home Loan Deposit Scheme?’ checkbox in the Summary tab.

In the Applicants tab:

Only one applicant should be added as the Family Home Guarantee is available to eligible single parents only;

Marital status must be ‘Single’, ‘Divorced’ or ‘Widowed’ (applicants who are ‘Married’, ‘Defacto’ or ‘Separated’ are not eligible);

First Home Buyer status may be ‘Yes’ or ‘No’ as applicants may have owned a property before;

At least one dependent child must be added.

When setting up your Government Guarantee security:

Add the ‘Family Home Guarantee Scheme’ security as your secondary security on the Security tab.

Select the new ‘Government Guarantee – Family Home Guarantee’ security type; 

Calculate the ‘FHLDS Scheme Value’ by entering between 0% and 18% of the property purchase price (depending on available deposit);

Enter the FHLDS Scheme ID as ‘5555-55-55555NAB5’. This ensures that our team assesses your application as a Family Home Guarantee, not a First Home Guarantee (0000-00-00000NAB0) or New Home Guarantee (9999-99-99999NAB9).

For the ‘Loan Purpose’, you must select ‘Owner Occupied’ and ‘Principal Residence’ purposes as applicants must intend to live in the property.

Verification documents

Applicants for the Family Home Guarantee must provide evidence of their marital status and that they have a dependant in addition to their FY21 ATO Notice of Assessment (NOA). 

Acceptable evidence of a dependant includes:

Dependant’s Australian Birth Certificate;

Dependant’s Adoption Certificate;

Consent or Parenting Order issued by the Family Court of Australia;

Family Court Order (for agreements whereby another family member may now be responsible for the dependant and thereby being the adoptive parent, e.g. grandparent, aunt/uncle);

Centrelink documentation addressed to the applicant showing they are receiving a benefit for a dependant or that details the care arrangement for the dependant (this should be paired with evidence of the dependants age should the documentation not have that detail).

The Home Buyer Declaration will be sufficient to evidence marital status. Only the new Home Buyer Declaration is valid for Scheme places reserved in FY22 (including Family Home Guarantees). The First Home Buyer Declaration and First Home Buyer (New Homes) Declaration can only be used for FY20 and FY21 Scheme places.

As applicants are unlikely to have received their FY21 ATO NOA prior to submission, you can include an estimate of their FY21 income as a note and ensure the customer immediately lodges their tax return. Unconditional approval cannot be provided without their FY21 NOA (this is also applicable for FY22 First Home Guarantees and New Home Guarantees).

Further support

For all details and eligibility criteria, please visit the Resources tab in the NAB Broker Portal or our Home Lending Offers page. You can also email or speak to your BDM.

NAB Update: FHLDS open for conditional approval applications at NAB 

First Home Loan Deposit Scheme – open for conditional approval applications at NAB

NAB is pleased to continue helping customers into their first home with the First Home Loan Deposit Scheme (FHLDS or Scheme) and the new Family Home Guarantee program announced as part of the 2021-2022 Budget.

You can now submit conditional approval applications for customers wanting to buy or build their first home with the FHLDS (now referred to as the First Home Guarantee) and FHLDS (New Homes) (now the New Home Guarantee) and join NAB’s priority list for a scheme place (subject to meeting key customer and property eligibility criteria). Your customer must obtain formal conditional approval before being added to our priority list and will be reserved a place from 1 July 2021 onwards when the new places are released.

Note: NAB will accept Family Home Guarantee applications from 1 July 2021. More details will be provided prior to the release date.

There are some key changes related to evidencing income eligibility when submitting for conditional approval and a new Home Buyer Declaration for new FY22 Scheme places that replaces the two existing declarations.

Submitting a First Home Guarantee and New Home Guarantee conditional approval application

Before submitting your customer’s application, you should always check the NAB Broker Portal to see if you’re able to submit applications and ensure you’re aware of the latest submission requirements, including eligibility criteria.

When applying for conditional approval, there are some important steps to remember:

1.    You’re not required to reserve a scheme place before submitting your customer’s application with NAB. NAB is open for business and will implement a waitlist when places available to NAB are in limited supply;

2.    Ensure you follow the ‘Applying for Conditional Approval’ process outlined on the Broker Portal and collect all required documentation/evidence, including your customer’s Medicare ID and their written consent to reserve them a Scheme place;

3.    Enter the relevant scheme dummy ID into the FHLDS Place ID field. 

Please enter:

'0000-00-00000NAB0’ for First Home Guarantee, or 

'9999-99-99999NAB9’ for New Home Guarantee. 

This ID is a placeholder and will be updated with your customer’s FHLDS Place ID once reserved.

4.    Add a comment with your customer's estimated taxable income for the financial year ending 30 June 2021 (if applying as a couple, provide both customers' income separately). You do not need to provide your customer’s FY21 ATO Notice of Assessment (NOA) upon submission until further notice, however, it will be required to achieve unconditional approval for FY22 Scheme places.

5.    Wait for confirmation from the credit assessment team of formal conditional approval. You’ll be notified once a Scheme place is reserved for your customer.

Evidencing income eligibility FY21 ATO NOA

With new Scheme places released on the first day of the new tax year (1 July 2021), you’ll be able to provide an estimate at conditional approval stage as a comment in your application rather than providing your customer’s FY21 ATO NOA to evidence their income eligibility.

Your customer should lodge their FY21 tax return immediately as their FY21 ATO NOA must be provided as evidence before unconditional approval can be provided.

From 31 August 2021, customers will be required to provide their FY21 ATO NOA when applying for conditional approval to evidence their income eligibility.

Completing the new Home Buyer Declaration

The new Home Buyer Declaration replaces the First Home Buyer Declaration and First Home Buyer (New Homes) Declaration. It is yet to be released by the National Housing Finance and Investment Corporation (NHFIC) but will be added to the NAB Broker Portal closer to 1 July 2021.

Customers reserved a new FY22 (starting ‘2021-22’) First or New Home Guarantee place must complete the new Home Buyer Declaration – to be made available later in June.

Customers reserved an FY21 (starting ‘2020-21’) or FY20 (starting ‘2019-20’) First Home Guarantee place must complete the current First Home Buyer Declaration.

Customers reserved an FY21 (starting ‘N2020-21’) New Home Guarantee place must complete the First Home Buyer (New Homes) Declaration.

What’s next?

Start conversations with your customers about how you can help them buy their first home sooner with only a 5% deposit and no Lenders Mortgage Insurance. Then, get them ready to complete their conditional approval application so they have the best chance of securing a new Scheme place when it’s released on 1 July.

Further support

For all details and eligibility criteria, please visit the Resources tab in the NAB Broker Portal or our Home Lending Offers page. You can also email or speak to your BDM. 

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