• Steph Delaporte

Everything you need to know about the First Home Loan Deposit Scheme



Exciting news for First Home Buyers! Under the 2021-2022 Federal Budget, the Australian Government is releasing 10,000 scheme places available from 1 July 2021. The initiative was established to support eligible first home buyers purchase their first home sooner. In addition, they have released an additional 10,000 scheme places for the purchase of new homes called the New Home Guarantee and another 10,000 places under a new initiative for single parents called the Family Home Guarantee.


First Home Loan Deposit Scheme

Usually, first home buyers with less than a 20% deposit need to pay lenders mortgage insurance, but under the Scheme eligible first home buyers can purchase a home with a deposit of as little as 5%. The type of property that can be bought must be a ‘residential property’ meaning an existing house, townhouse or apartment; a house and land package; land and a separate contract to build a home; or an off the plan apartment or townhouse.


Eligibility criteria

To check your potential eligibility for the Scheme, use the eligibility tool available on the NHFIC website. The following criteria will generally apply:

  • Applicants must be Australian citizens who are at least 18 years of age.

  • Only singles with a taxable income of up to $125,000 per annum and couples with a combined taxable income of up to $200,000 per annum may be eligible.

  • Couples are only eligible for the Scheme if they are married or in a de facto relationship. Other persons buying together, including siblings, parent/child or friends, are not eligible.

  • Applicants must have a deposit of between 5% and 20% of the property’s value. If you have over 20% saved then the home loan will not be covered by the scheme.

  • Applicants must be first home buyers who have not previously owned or had an interest in a residential property, either separately or jointly with someone else (this includes residential strata and company title properties).

  • Your maximum property purchase price is subject to the suburb and postcode of your new property. You can check the property price threshold for your property’s suburb and postcode on NHFIC’s website here.

  • You can only receive the Government Guarantee once. If you have entered the Scheme but were unable to purchase a property in time, you can request another place.

New Home Guarantee

The Australian Government announced an additional 10,000 FHLDS places for the 2020-21 financial year, specifically for eligible first home buyers building or purchasing new homes. These additional places are known as the New Home Guarantee.


Eligible first home buyers can use the New Home Guarantee in conjunction with other government programs like the First Home Super Saver Scheme, HomeBuilder grant or state and territory First Home Owner Grants and stamp duty concessions. Learn more about the New Home Guarantee and eligibility criteria here.


Family Home Guarantee

This new initiative is also launching on 1 July 2021. 10,000 Family Home Guarantees will be made available over four financial years, providing eligible single parents with the opportunity to build a new home or purchase an existing home with a deposit of 2%. Applicants must have dependants, the ability to service a home loan, Australian citizens and at least 18 years of age with an annual taxable income of no more than $125,000. First home buyers and previous occupiers are eligible. Download the NHFIC Family Home Guarantee Fact Sheet for more information.


There are currently 27 participating lenders across Australia offering places under the First Home Loan Deposit Scheme. If you would like to discuss your eligibility or seeking assistance with your application, contact us today.


Image by Chris Ross Harris

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