First Home Loan Deposit Scheme – January 2020
The First Home Loan Deposit Scheme (coming January 2020) from the Australian Government designed to support eligible first home buyers purchase a home sooner.
The National Housing Finance and Investment Corporation (NHFIC) will provide a guarantee for eligible first home buyers on low and middle incomes so that they can purchase a home with a deposit of as little as 5%.
What is it?
The First Home Loan Deposit Scheme is designed to get eligible buyers into their first home sooner without having to pay Lender’s Mortgage Insurance. Basically, it means a lower deposit and big savings 🤑 for First Home Buyers.
How does it work?
Under the First Home Loan Deposit Scheme, you’ll be required to contribute a minimum of 5% of the property’s value towards the deposit. The NHFIC will then provide a guarantee covering up to 15% of the property’s value.
When is it available?
The Scheme will support up to 10,000 loans Australia-wide each financial year, starting from 1 January 2020.
Are you eligible for the First Home Loan Deposit Scheme?
5% down on House & Land Packages like these...
Additional eligibility criteria
Principal and interest loans
To be eligible for the First Home Loan Deposit Scheme you must take out a loan that requires the scheduled repayments of the principal of the loan for the full period of the agreement. That is, interest-only loans are not permitted for the purposes of this Scheme except in specific circumstances including the construction of a new home, as outlined below.
Building a new home
If you are purchasing vacant land for the purpose of building a new home, your loan must relate to both the land and the home construction. Such a loan may be an eligible loan even if the terms of the loan agreement permit interest-only payments for a specified period.
This is a guide only and is not intended to be your sole source of information when making a financial decision and you may wish to consider getting advice from a licensed finance professional. To find out more about the application process, please click here.