The Australian Government is introducing a First Home Loan Deposit Scheme (FHLDS) 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 per cent.
The FHLDS will support up to 10,000 first home loan guarantees each financial year. Eligible borrowers can use the guarantee in conjunction with other government programs like the First Home Super Saver Scheme, state and territory First Home Owner Grants and stamp duty concessions. The guarantee is not a cash payment.
The First Home Loan Deposit Scheme kicked off on 1st of January 2020.
Yes, the purpose of the Scheme is to help in 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 price caps for capital cities, large regional centres and regional areas are:
|State/territory||Capital city and regional centres||Rest of state||Other|
|Jervis Bay Territory and
|Christmas Island and Cocos (Keeling) Islands||–||–||$400,000|
The capital city price thresholds apply to regional centres with a population over 250,000 (the Gold Coast, Newcastle and Lake Macquarie, the Sunshine Coast, Illawarra (Wollongong) and Geelong), recognising that dwellings in regional centres tend to be significantly more expensive than other regional areas.
Look up your suburb or postcode on the NHFIC website to see the property price threshold www.nhfic.gov.au/what-we-do/fhlds/eligibility/
Are you a first home buyer? Speak with one of our Home Loan Specialists who will step you through the process. We can handle everything over the phone and internet, so there is no need for you to leave your home or work. As part of our process we will help you understand what your borrowing capacity is. Borrowing capacity refers to the amount that you can likely borrow for your first home.
* Terms and conditions apply
Subject to the lender’s own assessment and product policies. The Comparison Rate helps you work out the total cost of the loan (including fees and charges) and can also help you compare different loans. For further information on this and more, speak with one of our Lending Specialists today.