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First Home Loan Deposit Scheme

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The First Home Loan Deposit Scheme is being introduced by the Australian Government through the National Housing Finance & Investment Corporation (NHFIC) to help eligible first home buyers purchase their home sooner. The Scheme will assist 10,000 first homeowners and will start January 1, 2020, although applications for the Scheme are not open yet.
We are sharing some of the key elements relating to the Scheme but for more information please visit https://www.nhfic.gov.au/what-we-do/fhlds/

What is the First Home Loan Deposit Scheme?

The Government will provide a guarantee that will allow eligible First Home Buyers (FHB) on low & middle incomes to purchase a home with a deposit of as little as 5 percent. 10,000 eligible borrowers can use the Scheme in conjunction with Stamp Duty concessions, FHB Grants and First Home Super Saver Scheme and can be applied when buying:

  • an existing dwelling (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

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Who is eligible for the Scheme?

  • Australian citizens who are at least 18 years old.  Permanent residents are ineligible
  • Singles with a taxable income of up to $125,000 per year and couples with a combined taxable income of $200,000 per year.  (Income will be assessed based on the previous financial year from when you apply for a loan under the Scheme)
  • Couples can only be those in a de facto relationship or married
  • Those who apply must have a deposit between 5% and 20% of the value of the property
  • Loans must include repayments of the principal of the loan for the full period of the agreement
  • Applicants must intend to live in the property i.e. be owner occupiers
  • Applicants must not have previously owned property or had an interest in a property

Do property price thresholds apply?
Yes, the Scheme is intended for the purchase of a modest property and the value must not exceed the price cap for the property in a particular area.  Visit here to see the price threshold for an area or postcode that interests you.
How do I apply?
Applications are not open yet, but once they are, they will be managed by participating lenders and their brokers.  You will not go to NHFIC directly, nor will it provide any personal financial advice.  You will still go to your broker and they will be able to assess your eligibility.
NB The information above is extracted from the NHFIC website and is accurate at the time of emailing

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If you would like to discuss your situation, please do not hesitate to contact me on 0412 709 200 or book a time to chat via calendly.com/louise
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