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).
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|
|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.