FHLDS has been extended

As part of the 2020-21 Federal Budget, the Australian Government has committed an additional 10,000 First Home Loan Deposit Scheme (FHLDS) places for the 2020-21 financial year, specifically for eligible first home buyers purchasing new homes.

The additional 10,000 guarantees will be made available in 2020-21 for eligible first home buyers to build a new dwelling or purchase a newly built dwelling with a deposit between 5% and 20% of the property’s value (lender criteria applies). A revised set of property price caps will apply specifically for eligible properties under NHG (New Home Guarantee).

First Home Loan Deposit Scheme (FHLDS) New Home Guarantee

Who is eligible?

The eligibility criteria for the NHG is the same as the criteria for the FHLDS. Applicants must:

be Australian citizens
be at least 18 years old
be first home buyers who have not previously owned, or had an interest in, a property in Australia, either separately or jointly with someone else (this includes residential strata and company title properties)
have between 5 and 20 per cent of the value of an eligible property for the loan deposit
have a taxable income of up to $125,000 per annum for the previous financial year (if applying as a single applicant)
have a combined taxable income of up to $200,000 per annum for the previous financial year (if applying as a couple* application)
intend to be owner-occupiers of the property**

You need to satisfy all these checks to qualify for the NHG. If you don’t meet the requirements for one or more of these checks, or have questions about any of these matters, you should seek advice on your application from a participating lender.

* Only single (individuals) or couples are eligible for the NHG. Couples are defined as those who are married or in a de-facto relationship with each other. Other persons buying together, including siblings, parent/child or friends, are not eligible for the NHG.

** Investment properties are not eligible for the NHG. In the case of active Australian Defence Force member applicant(s), the guarantee is not subject to the owner-occupier requirement after entering into the loan if they cannot meet this requirement because of their duties.

What are the revised property price caps?

A revised set of property price caps will apply specifically for eligible properties under the NHG and are detailed in the table below.

Region	NHG property price cap
NSW – Capital City and Regional Centre	$950,000
NSW – Other	$600,000
VIC – Capital City and Regional Centre	$850,000
VIC – Other	$550,000
QLD – Capital City and Regional Centre	$650,000
QLD – Other	$500,000
WA – Capital City	$550,000
WA – Other	$400,000
SA – Capital City	$550,000
SA – Other	$400,000
TAS – Capital City	$550,000
TAS – Other	$400,000
Australian Capital Territory	$600,000
Northern Territory	$550,000
Jervis Bay Territory & Norfolk Island	$600,000
Christmas Island & Cocos (Keeling Island)	$400,000

How to apply

Applications can be lodged through the participating lenders. We will organise this on your behalf through the lender you have chosen to submit your loan through.

There have been 27 lenders on the panel of residential mortgage lenders to offer guarantees under the Scheme. All participating lenders are supporting the Scheme by not charging eligible customers higher interest rates than equivalent customers outside the Scheme. All lenders are listed below.

First Home Buyers

Saving a deposit for your first home can be very difficult and sometimes just too hard to achieve, which is why we are so excited the Australian government has introduced the First Home Loan Deposit Scheme.

What is the First Home Loan Deposit Scheme (FHLDS)?

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

It does this by providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5%.

The Scheme will support up to 10,000 loans each financial year, starting from 1 January 2020.

First Home Loan Deposit Scheme (FHLDS) website

Eligibility

The income thresholds will be up to $125,000 per annum for singles and up to $200,000 per annum combined for couples (assessed in the financial year preceding the financial year in which the loan is entered into).
The Scheme will apply to owner-occupied loans on a principal and interest basis.
Applicants must intend to move into and live in the property as their principal place of residence (ie they must be owner occupiers).
Australian citizens who are at least 18 years of age. Permanent residents are not eligible
Applicants must not have previously owned or had an interest in a residential property, either separately or jointly with someone else (this includes residential strata and company title properties, regardless of whether it was an investment or owner-occupied property and whether it was ever lived in)
Couples are only eligible for the scheme if they are married or in a de facto relationship. Other persons buying together, including siblings, parent/child or friends, are not eligible
Applicants must have a deposit of between 5% and 20% of the property’s value
Your maximum property purchase price is subject to the suburb and postcode of your new property.
You can only receive the Government Guarantee once.

Am I Eligible? Check Here

Property Price Thresholds

The purpose of the scheme is to help with the purchase of a modest home and the value of the residential property must not exceed the price cap for the area in which the property is located. The prices caps:

Check your postcode here

What type of property can be purchased under the Scheme?

An existing house, townhouse or apartment
A house and land package
Land together with a separate contract to build a home
An off-the-plan apartment or townhouse

How to apply

Applications can be lodged through the participating lenders. We will organise this on your behalf through the lender you have chosen to submit your loan through.