First Home Loan Deposit Scheme explained

Now known as the Home Guarantee, can reduce your costs and boost your purchase price by removing Lenders Mortgage Insurance.

HAVE A 20% DEPOSIT?

Crucially the 20% deposit is calculated after purchase costs of stamp duty and transfer fees. Any less than 20% results in Lenders Mortgage Insurance (LMI) and typically more costly rates.


LESS THAN 20% DEPOSIT

Lenders Mortgage Insurance (LMI) on a $650,000 purchase scales from $3,000 up to $18,000 reducing your maximum purchase. Speak to us about possible exceptions to for specific professions or with a 15% deposit.

HOW FHLDS WORKS

With a First Home Loan Deposit Scheme Placement the government provides the guarantee for the lender, so that Lenders Mortgage Insurance isn't required.
FHLDS is for Owner Occupied purchases only.


5% deposit required to be held for at least 3 months.

2022 1st July price caps: $800k Melbourne, $650k regional VIC

Available through select scheme lenders only.

First Home Loan Deposit Scheme Eligibility

-Must be an Australian citizen.
-Price caps apply per region.
-Taxable income of up to $125,000 per annum for singles and $200,000 per annum combined for de facto or married couples.
Owner Occupied only.
-First home buyers only, must not have owned or had an interest in a Australian property.
-Evidence of 5% deposit over 3 months in applicants name.

First Home Loan Deposit Scheme now known as the Home Guarantee Scheme

WHAT KIND OF HOME CAN I BUY?

-Established houses, townhouses and apartments.
-Newly constructed dwellings
-Off the-plan dwellings
-House and land packages
-Land and a separate build contract.

First Home Loan Deposit Scheme now known as the Home Guarantee Scheme

SINGLE PARENTS CAN BUY WITH A 2% DEPOSIT

The same eligibility criteria applies around price and income caps. Additionally being a single parent with at least one dependent living with you and the single must be the only individual on the loan and title.

First Home Loan Deposit Scheme now known as the Home Guarantee Scheme

ALTERNATIVES IF YOU ARE INELIGIBLE

Given only some lenders are part of the scheme, some are offering $1 LMI on 15% deposits.
Also select professionals may be able to avoid LMI with as little as a 10% deposit.

First Home Loan Deposit Scheme key steps and timelines

-Determine eligibility based on key criteria above.
-Determine availability by lender.
-Determine loan servicability for the lenders with placements available.
Apply for pre approval.
-Once receiving pre approval the placement will be valid for 90 days before expiry.

Back to first Home Buyer Guide

For further info click here for the Government NHFIC page

To discuss whether this could be beneficial to you

We now own our house thanks to you. We never thought it could be done and your advice and help throughout have made our dreams come true. We can’t thank you enough for all the work you have put in over the last 18 months, Ben. It has been a lot of work for you.

Thank you again!

Marne and Sam

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Joe

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Jessica