First Home Loan Deposit Scheme (FHLDS)

Overview

First Home Loan Deposit Scheme places for the 2020-21 financial year are now available through our panel of 27 participating lenders.

The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase their first home sooner.

Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase a modest home with a deposit with as little as 5 per cent (lenders criteria also apply). This is because NHFIC guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer’s home loan.

There are currently 27 participating lenders across Australia offering places under the First Home Loan Deposit Scheme.

Your application

All applications for the First Home Loan Deposit Scheme need to be made directly with one of the Scheme’s participating lenders. NHFIC doesn’t accept applications directly from first home buyers.

Before making a reservation, you should carefully consider whether to apply as a single or as part of a couple. This is because once a Scheme place has been reserved for you (as a single or as a couple), it can only be changed by withdrawing and starting a new application. Your ability to secure a Scheme place when doing so will depend on whether a place is available at that time.

For your application you (and your partner if applicable) will need a Notice of Assessment from the Australian Taxation Office to demonstrate your taxable income for the previous financial year. For applications made during the 2020-21 financial year, a 2019-20 Notice of Assessment is required.

Eligibility

Your lender will check your eligibility for the Scheme by looking at your personal circumstances.

These checks include:

• an income test
• a prior property ownership test
• a minimum age test
• a deposit requirement
• an owner-occupier requirement.

Property price thresholds

The First Home Loan Deposit Scheme helps eligible first home buyers purchase a modest home sooner. A property price threshold (the maximum property purchase price) applies in capital cities, selected regional centres and regional areas.

You can search by postcode or suburb to find the property price threshold for the area you wish to buy, and find information about different property types that qualify under the Scheme.

How to apply

All applications for the First Home Loan Deposit Scheme need to be made directly with one of the Scheme’s participating lenders. NHFIC doesn’t accept applications directly from first home buyers.

You can apply for a Scheme-backed loan with more than one participating lender, so you can shop around for a competitive home loan rate. You will only receive one place under the Scheme, no matterhow many lenders you approach. Find all of the information you need here.

Source: NHFIC - www.nhfic.gov.au/what-we-do/fhlds/

Affordable and Liveable Property Guide

Check out our ALPG reports and where you should be looking to take advantage of the First Home Loan Deposit Scheme here.