First Home Loan Deposit Scheme
First Home Loan Deposit Scheme

First Home Loan Deposit Scheme

Family Home Loans

What is the First Home Loan Deposit Scheme?

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.

When does the First Home Loan Deposit Scheme start?

  • The First Home Loan Deposit Scheme kicked off on 1st of January 2020.

What type of property can be bought 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.


Calculate Home Loans Repayments

Do property price thresholds apply?

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/territoryCapital city and regional centresRest of stateOther
NSW $800,000$600,000 
VIC $700,000 $500,000 
QLD $600,000 $450,000$450,000
WA $500,000 $400,000 
SA $500,000 $350,000 
ACT $500,000- 
NT $500,000- 
Jervis Bay Territory and
Norfolk Island
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 -

Who is eligible for the Scheme?

  • Australian citizens who are at least 18 years of age. Permanent residents are not eligible.
  • Singles with a taxable income of up to $125,000 per annum and couples with a taxable income of up to $200,000 per annum. Incomes will be assessed for the financial year preceding the financial year in which the loan is entered into.
  • 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 for the Scheme.
  • Applicants must have a deposit of between 5 and 20 per cent of the property's value.
  • Loans under the Scheme require scheduled repayments of the principal of the loan for the full period of the agreement.

    If the loan relates both to the purchase of vacant land to the construction of a house on the land, the loan may be an eligible loan even if the terms of the loan agreement permit interest-only repayments for a specified period.
  • Applicants must intend to move into and live in the property as their principal place of residence (i.e.they must be owner occupiers).
  • Applicants must be first home buyers who have not 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).

How do I apply?

  • 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.


Quick Home Loan Approvals

* 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. 

To find out more about the application process, please call us today on 1300 665 906.

Some Handy Calculators

More Information

We Can Help