NAB is one of the two major banks that were assigned FHB deposit places under the Federal Government scheme which allows a FHB to secure a mortgage with a 5% deposit without need to obtain lenders mortgage insurance.
The bank found in the three months ending 31 October, housing finance for FHBs rose 21% compared with the previous period, with the strongest demand in Western Australia, Queensland and regional NSW. On a national level, metropolitan first-home buying grew 17% over the period, while regional uptake grew 44%. Their activity is driving house prices higher in many regional centres across Australia.
NAB executive Andy Kerr says the mortgage rush from FHBs is at a level not seen in more than a decade.