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NAB offers payment reduction initiative for new families

The major bank is offering additional support under NAB Assist for new parents with home loan repayment challenges.

Eligible customers on parental leave will have the option of a 75 per cent reduction on home loan repayments for up to six months under this new initiative.

Customers are required to be on parental leave, or commencing on parental leave in the next month, to be eligible. Applicants will also be assessed whether or not they can make a minimum repayment of at least 25 per cent.

NAB Assist executive, Stephanie Boag, said that this new initiative would be a “game changer” for new families and could be critical for those faced with the rising cost of living.

“Having a child or adding to the family can be a shock, not only in terms of the sleep deprivation, but also when it comes to making ends meet,” Ms Boag stated.

“When a parent on parental leave gets in touch with us to flag concerns about meeting their financial commitments, we’ve decided as a team to offer reduced payments on their home loan with no need to check back in with us for six months.”

FHB relying on government home loan schemes

A survey of 1,500 respondents conducted by Great Southern Bank revealed that potential first home buyers (FHBs) are relying on government schemes more than ever before.

A total of 72 per cent of FHBs were hoping to use the support offered by the government compared to 55 per cent who purchased in the past five years. A further 31 per cent have not ruled out taking advantage of the schemes.

The government’s Home Guarantee Scheme that includes the First Home Loan Deposit Scheme (FHLDS), New Home Guarantee (NHG), and the Family Home Guarantee (FHG) was first introduced by the Morrison government and later expanded to include the Regional Home Guarantee when the Albanese government took office in May 2022.

Great Southern Bank’s head of broker, Mathew Patterson, highlighted the opportunities for savvy FHBs.

“Government schemes are a key way that savvy first homebuyers can stay ahead of the game and put property ownership within reach,” Mr Patterson said.

“With extensive changes underway, it is absolutely crucial that those considering federal and state government support do their homework and understand what financial support might be available.”

[RELATED: FHBs to lean on home loan deposit schemes]

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