Move would bring last of Big Four banks into fold of Labor’s cornerstone housing policy
Currently, ANZ is the only banking major not participating in Labor’s cornerstone homebuying initiate, which allows first-home buyers to purchase a home with just a 5% deposit.
But in comments shared with MPA, that could soon change.
“ANZ is committed to helping Australians achieve homeownership through flexible and tailored solutions,” an ANZ spokesperson told MPA. “We look forward to assessing participation in the new phase of the government’s Home Guarantee Scheme.”
The First Home Guarantee saw a major expansion on 1 October, with income limits and annual quotas scrapped, and property price thresholds significantly lifted.
More lenders are expected to participate in the scheme to take advantage of a surge in first-home buyer enquiries following this expansion.
The current Home HGS panel, according to the official government website, comprises:
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Australian Military Bank
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Australian Mutual Bank
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Bank First
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Bank SA
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Bank of Us
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Bendigo Bank
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Border Bank
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Commonwealth Bank
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Community First Bank
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Credit Union SA
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Firefighters Mutual Bank
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G&C Mutual Bank
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Health Professionals Bank
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Indigenous Business Australia
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Illawarra Credit Union
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National Australia Bank
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Newcastle Permanent Building Society logo
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People's Choice
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Police Bank
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QBank
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Queensland Country Bank
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Regional Australia Bank
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St George Bank
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Teachers Mutual Bank
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The Mutual Bank
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Unity Bank
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Westpac
ANZ’s potential participation in the HGS is complicated by the fact that it services its own lenders mortgage insurance (LMI).
This allows ANZ to offer 5% deposits by passing down LMI costs to the buyer. Other lenders such as Commonwealth Bank use external LMI providers like Helia and QBE.
The HGS has potentially huge implications for Australia’s LMI market, particularly for Helia, which almost exclusively offers LMI. As the other major LMI provider, QBE has a diversified insurance offering, therefore sheltering it from any negative effects of government intervention into the low-deposit mortgage market.
Read more: Government giving 'tax-payer funded support to wealthier borrowers' says Helia
But as the smallest home lender of the Big Four – and one that is facing intense competition from Macquarie – ANZ must adapt to maintain its market share.
“ANZ has a housing target to fund and facilitate $10 billion of affordable, secure and sustainable homes to buy and rent by 2030. As of 31 March 2025, we had funded $7.02b towards this target since 2018,” the ANZ spokesperson added.
Greater diversity on HGS panel needed
More customer-owned banks are also expected to be added to the HGS panel after the government instructed Housing Australia to promote greater diversity among lenders participating in the scheme.
The shift could see dozens more mutual banks and credit unions added to the lender panel, a move welcomed by Customer Owned Banking Association (COBA) chief executive Michael Lawrence.
“Our sector has a long-standing commitment to first-home buyers,” Lawrence told MPA in August. “Customer-owned banks serve an incredibly diverse range of communities with tailored solutions.
“More customer-owned banks on the HGS panel will create a more dynamic, inclusive, and competitive market. Ultimately, this increased competition and choice will benefit first-home buyers.”
