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.

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.

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:

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.

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.

Major bank lenders

Non-major bank lenders