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Getting into your first home sooner just got a whole lot easier

First Home Loan Deposit Scheme

It is tough to save a deposit for your first home. Also, if your deposit is under 20%, you are normally required to save even more to help cover the cost of the Lender’s Mortgage Insurance as well. 

The Australian Government initiative to help first home buyers with a smaller deposit has been launched.  This scheme is known as the First Home Loan Deposit Scheme or FHLDS for short. 

Each year, it will give the opportunity to 10,000 first home buyers who have saved a deposit of as little as 5% to get into their first home without paying Lender’s Mortgage Insurance.  This could save a First Home Buyer up to $20,000 and get you into your home a whole lot sooner.  

There are only a 10,000 allocations each year and in January 2020, the allocated 3000 spots for that month were snapped up in the first few days.  The remaining 7000 will be available from 1st February 2020, so read on to see if you are eligible and don’t dilly dally around or you could miss out. 

What is the FHLDS?

The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase a home sooner without having to pay Lender’s Mortgage Insurance.

How does it work?

The Australian Government will provide 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%.

When is it available?

Initial allocations that were launched on 1st January 2020 have been exhausted.  Remaining allocations will commence 1st February 2020.  Contact us to start getting applications in from 20th January 2020.

Who can apply for the FHLDS?

The Scheme is available for singles and married or de-facto couples.  It is not available for relatives.  So a brother and sister cannot buy a house together under the Scheme.  All applicants must:

  • be at least 18 years old
  • be first home buyers
  • be Australian Citizens – Permanent residents are not eligible
  •  have a medicare card
  • have earned less than $125,000 for singles or less than $200,000 for couples and evidenced by previous financial year’s ATO Notice of Assessment.

Complete eligibility criteria can be found by visiting the NHFIC eligibility guide.

What properties are eligible?

The Scheme is available for residential owner occupier property only.  The loan must be a Principal & Interest loan. 

If you will be building a home, the loan can be Interest Only during the construction period but must revert to Principal & Interest when construction is complete.

There are maximum property prices that are covered by the Scheme and is dependant upon the State and region your are buying in.

Click here to see the Eligible Property Price Thresholds NHFIC Eligible Property Price Thresholds.

How to apply


Check your eligibility

Visit the NHFIC eligibility guide online for details about your eligibility and details about property eligibility.


Secure your spot

Contact our lending specialists on 03 8560 5000 to make an appointment.  Or complete the Online Form and we will contact you to make an appointment at a time & place that suits you


Buy your home

You have to purchase a home that meets the eligibility criteria within 90 days of approval.  If you don’t, then your allocation will be cancelled and returned to the pool to be made available to other applicants.


Move into your home

You must move into your home within 6 months of settlement.  If you are building a home, then you must move in within 6 months of the certificate of occupancy being issued.

Very limited spots are available. Call today to secure your spot.

As an added bonus, you could also be eligible for the First Home Owner's Grant.

The First Home Owner’s Grant is a State Government initiative and is independent of the FHLDS which is a Federal Government initiative.  You could be eligible for both and receive a grant from your state government if you qualify.  Read more…

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