First Home Loan Deposit Scheme

In the 2020-21 Federal Budget, the Australian Government announced an additional 10,000 FHLDS places for the 2020-21 financial year, specifically for eligible first homebuyers building or purchasing new homes. 

You can find out more about the new eligibility requirements for the FHLDS (New Homes) via NHFIC, here.

The current quota has been filled. We expect that further scheme places may be released in the new year. If there is any change prior to that date we will update our advice, and in the meantime we encourage applicants to get in touch to discuss what options are available to you.

The National Housing Finance and Investment Corporation (NHFIC) was established by the Australian Government as a corporate Commonwealth entity dedicated to improving housing outcomes, with a particular focus on affordable housing. You can find out more here.

The amount you can borrow depends on the suburb you are purchasing a property in. NHFIC has developed a tool for first home buyers to find out the relevant property price threshold if you enter the postcode or suburb of the property you are looking to purchase. Access the tool here.

Eligible properties include:

• Existing house, town house or apartment
• House and land package
• Land together with a separate contract to build a home
• Off the plan apartment or townhouse 

You can apply for a place under the Scheme as well as other Commonwealth, State and Territory Government programs including the First Home Super Saver Scheme or first home owner grants and concessions. These other programs apply their own criteria and conditions. You should make your own enquiries on the terms of these other programs.

Lenders Mortgage Insurance (LMI) is a one-off payment that is generally required when the loan is in excess of 80% of the property value that you are purchasing. It protects the lender in the event that the borrower defaults on the loan and there is still money owing after the property is sold. Depending on the value of the property and the loan to value ratio, Lenders Mortgage Insurance may be several thousand dollars. Under the Scheme, eligible buyers can avoid paying LMI.

We recommend using the First Home Loan Deposit Scheme eligibility tool before speaking with us.

From 1 July 2020, all applicants are required to provide their final 2019-20 ATO Notice of Assessment. We’ll also need to understand your income, expenses, details of any other loans, and your living situation.

From there, we can talk you through the application process and if you are eligible, we can submit an application to the Scheme on your behalf.

For more information on the Scheme including eligibility criteria, property price thresholds and the application process, visit National Housing Finance and Investment Corporation (NHFIC) or download the First Home Loan Deposit Scheme fact sheet.