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Making the Most of the First Home Loan Deposit Scheme

-21.02.20-
first home loan deposit scheme

The Australian government has introduced a First Home Loan Deposit Scheme (FHLDS) to help first home buyers purchase a home sooner. Only two months on since the announcement and already, more than 5,000 keen first home buyers have taken up the offer. Here’s what you need to know to do the same.

What is the First Home Loan Deposit Scheme?

The FHLDS was introduced on January 1, 2020, to help eligible first home buyers to purchase a home sooner. Each financial year, 10,000 first home buyers on low and middle incomes will be eligible to secure a property with as little as a 5 per cent deposit without paying lenders mortgage insurance (LMI). Under the arrangement, a price threshold of up to $600,000 applies to Melbourne properties.

Are you Eligible?

In order to be eligible for the scheme you must meet the following conditions:

  • Be Australian citizens who are at least 18 years of age. Permanent residents are not eligible.
  • Singles with a taxable income of up to $125,000 per annum and couples with a taxable income of up to $200,000 per annum.
  • Applicants must have a deposit of between 5 and 20 per cent of the property’s value.
  • Loans under the Scheme require scheduled repayments of the principal of the loan for the full period of the agreement.
  • Applicants must intend to move into and live in the property as their principal place of residence.
  • Applicants must be first home buyers who have not previously owned or had an interest in a residential property.

To find out more about the application process, visit the NHFIC website at www.nhfic.gov.au.

If you’re curious about house and land packages that are eligible at Orchard, visit our House and Land page and filter by price (max $600,000). Or visit us in person at our Sales Centre located at corner Leakes Road & Heartlands Boulevard, Tarneit.