Door opens for first-home loan scheme

NAB has started accepting expressions of interest from Australians wanting to take part in the government-backed First Home Loan Deposit Scheme.

The scheme allows home buyers to only put down a five per cent deposit on the loans, with the National Housing Finance and Investment Corporation guaranteeing the rest of what would normally be a 20 per cent deposit.

The banks taking part have agreed not to charge eligible scheme customers higher interest rates than equivalent customers outside of the scheme.

"This scheme is a fantastic way of helping even more customers, allowing them to potentially save thousands of dollars on their mortgage and enter the property market sooner," NAB's Mike Baird said on Tuesday.

The guaranteed loans will be available from January.

NAB and Commonwealth Bank will receive at least half of the initial 10,000 guarantees allocated this financial year.

Twenty-five non-major lenders in the scheme will start offering guaranteed loans from February 1.