What is the First Home Loan Deposit Scheme?
The First Home Loan Deposit Scheme is a Federal Government Initiative designed to support new homeowners looking to enter the property market who only have a small deposit to put towards their first home.
How will the First Home Loan Deposit Scheme assist first-time buyers?
If you are approved and have only 5% deposit genuinely saved for your first home, you will avoid paying Lender’s Mortgage Insurance (LMI). For many buyers, this scheme is the opportunity they need to get into the property market.
What are the new changes to the scheme?
The Government announced an additional 10,000 FHLDS spots for the 2020-21 financial year, specifically for eligible first home buyers building or purchasing new homes. These additional places are known as the First Home Loan Deposit Scheme (New Homes), FHLDS (New Homes) or New Home Guarantee.
What is the benefit of the First Home Loan Deposit Scheme?
The 10,000 spots offer those first home buyers looking to buy their first home a greater opportunity to secure a home with the low deposit assistance. With the property prices increasing steadily, these extra places will be filling up quickly over the next couple of months.
What type of properties are eligible?
Eligible properties for the First Home Loan Deposit Scheme (New Homes) include:
- Newly Constructed Dwellings
- Off-The-Plan Dwellings
- House and Land Packages
- Land and a separate contract to build a New Home
Are there property thresholds?
The property price thresholds for the First Home Loan Deposit Scheme vary depending on the state you are purchasing in:
How can you take advantage of this scheme to buy your first home?
If purchasing your first home is something you want to achieve in the near future and you believe you fit into the eligibility criteria for the current available Government Initiatives, you need to act quickly.
Low interest rates, a dwindling market supply and a fear of missing out among buyers are pushing property prices through the roof. As a first home buyer, especially those with a low deposit, the time to act is now. The first step in the process is to assess your ability to service for a loan.
You are now able to apply for your first home online! Click here and complete the form to assess your eligibility for a new home the First Home Loan Deposit Scheme (New Homes).