PHOTO: First Home Loan Deposit Scheme

The government is a step closer to unleashing the home ownership dreams for 10,000 Australians in 2020.

The government has named 27 lenders who have been selected to be a part of the First Home Loan Deposit Scheme.

National Housing Finance and Investment Corporation (NHFIC) confirmed the lenders from a vast pool of applicants to form the first panel to offer guarantee-backed loans for new home buyers.

The National Australia Bank (NAB) and Commonwealth Bank of Australia (CBA) are the only two big banks that are part of the scheme, with 25 non-major lenders on the list as well.

All of the lenders have committed not to charge eligible customers higher interest rates than those who are not part of the scheme.

“The scheme has been deliberately designed to ensure strong representation of smaller lenders on the panel,” Housing Minister and Assistant Treasurer Michael Sukkar said.

“This will promote competition between the large and small banks, and ensure the scheme has broad geographic reach, including in regional and remote communities.”

The make-up of the panel should enable strong activation of mortgage broker channels and promote choice for new property buyers, Mr Sukkar said.