FIRST HOME LOAN DEPOSIT SCHEME

The Australian Government has announced an additional 10,000 First Home Loan Deposit Scheme places will be provided for the 2020-21 financial year, to support the purchase of a new home or a newly built home.

The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase their first home sooner.

Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase a modest home with a deposit with as little as 5 per cent (lenders criteria also apply). This is because NHFIC guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer’s home loan.

There are currently 27 participating lenders across Australia offering places under the First Home Loan Deposit Scheme.

ELIGIBILITY: To access the First Home Loan Deposit Scheme, purchasers must meet the following eligibility checks:

  • an income test;
  • a prior property ownership test;
  • a minimum age test;
  • a deposit requirement;
  • an owner-occupier requirement;
  • property price caps

READ MORE: FIRST HOME LOAN DEPOSIT SCHEME

VIEW GOVERNMENT ANNOUCEMENT

FIRST HOME BUYER ASSISTANCE SCHEME

If you’re a first home buyer, you may be entitled to a concessional rate of transfer duty or even an exemption from paying it altogether under the First Home Buyers Assistance scheme (FHBAS).

ELIGIBILITY: the grant is available for:

  • buying an existing home
  • buying a new home and
  • vacant land on which you intend to build a home.

READ MORE: FIRST HOME BUYER ASSISTANCE SCHEME

FIRST HOME OWNER GRANT (NEW HOMES) SCHEME

If you’re a first home buyer and you’re buying or building a new home, you may qualify for a $10,000 grant under the First Home Owner Grant (New Homes) scheme.

ELIGIBILITY: the grant is available for:

  • contract to buy a new home
  • building contract by the owner of the land
  • owner of the land building their own home.

READ MORE: FIRST HOME OWNER GRANT (NEW HOMES) SCHEME