Only 10,000 First Home Loans Deposit Scheme

From January 1, 2020, things may get a little easier if you’re one of 10,000 borrowers eligible for the First Home Loan Deposit Scheme.

The First Home Loan Deposit Scheme will assist an eligible first home buyer to purchase a house with a 5% deposit. The government will provide a loan guarantee of up to 15% of the property’s value to individuals earning up to $125,000, or couples earning up to $200,000, per year. The scheme could also save you up to $10,000 in lenders mortgage insurance.

Eligibility for the Scheme will also depend on where you live. In a media release dated 27 October 2019, the government announced, “Property price caps under the Scheme set appropriate price thresholds in capital cities, large regional centres with a population over 250,000 and regional areas.”

These thresholds are listed below:

State/territory

Capital city and large regional centres

Rest of state

NSW

$700,000

$450,000

VIC

$600,000

$375,000

QLD

$475,000

$400,000

WA

$400,000

$300,000

SA

$400,000

$250,000

TAS

$400,000

$300,000

ACT

$500,000

NT

$375,000

What does it mean for you?

If you’re an eligible first home buyer, you’ll only need a 5% deposit to apply for a home loan. The additional 15% will be provided by the NHFIC, and administered by an approved lender.

Applications for the Scheme are expected to open on January 1 2020 and will operate on a “first come, first served” basis until the allocated 10,000 guarantees have been issued. The NHFIC will be providing further details about the Scheme, including information about:

  • eligibility
  • participating financial institutions, and
  • the application and assessment process.

It’ll also be consulting with relevant parties in the lead up to the Scheme’s commencement.

Now is the perfect time to secure a registered block of land in order to prepare your building contract for a house and land package and finance application in order to apply for this scheme. 

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