MyState has been selected to join the lending panel for the federal government's new First Home Loan Deposit Scheme.
The bank's managing director and chief executive, Melos Sulicich, said the decision by the National Housing Finance and Investment Corporation would allow it to be among the first lending institutions to offer eligible customers borrowing ability under the scheme.
"The scheme enables first-home buyers to get into the housing market much earlier, allowing customers to own their own home with a deposit as low as five per cent," he said.
"The customers do not need lenders mortgage insurance and this is a huge benefit which may save them many thousands of dollars over the life of a loan."
Normally, home buyers usually need to pay a deposit equal to at least 20 per cent of a property's purchase price to avoid paying mortgage insurance.
National Housing and Finance Corporation chief executive Nathan Dal Bon said the organisation received strong interest from a broad range of smaller lenders.
The scheme is intended to support up to 10,000 loans each financial year for single applicants earning up to $125,000 annually or couples earning up to $200,000.
Price caps apply depending on the location of the property.
MyState will accept applications under the federal government's scheme from February 1.
The bank's wealth management business, TPT Wealth, has also launched a new platform to provide managed fund investors with national digital services.
The new digital portal will allow investors to manage their investments online, make trades, or top up their investment.