Calling all First Homebuyers!

Published Thu 19 Mar 2020

The First Homeowners Scheme is an initiative run by the government aimed at getting first homeowners into the property market sooner. From 1st January 2020 the government launched an initiative offering 10,000 low deposit loans for eligible applicants.

Calling all First Homebuyers! This is aimed at low to middle income earners that have saved a deposit of at least 5% of the selected property value (but no more than 20%).
The NHIFC has allowed for 10,000 places for the FHLDS for this financial year. 5000 places were given to the major banks, CBA & NAB, which are now all reserved.  The remaining 5000 places for the current financial year which have been allocated to 25 non major lenders. Several places are still available to be reserved by potential first home buyers.
An additional 10,000 places will become available from July 2020.
Although all the places for the major lenders have been reserved, you can continue to engage with the major banks should any places become open if applicants wish not to proceed with their purchase.
Once you have secured a place within the Scheme with one participating lender you will still be able to apply with any of the other lenders to ensure that you can obtain the best possible loan rate.
To check out the list of participating lenders in the First Home Loan Deposit Scheme click here

To Apply
Prior to making an application, first home buyers should decide whether they want to apply as a single or a couple.
Once a reservation has been submitted as a single or a couple it can only be amended by withdrawing or making a new application.  Your capacity to secure a place when doing so will depend on whether there are any places left at the time.

Eligibility

Income
The taxable income for a single applicant for the previous year must be below $135,000. The combined taxable income for a couple for the previous year must be below $200,000.

Citizen Requirements
The FHLDS is available to current Australian residents only.  The scheme is not open to permanent residents that are not currently Australian citizens.

First Home Buyer
Applicants, when applying as a single or a couple cannot have previously held or owned a property or interest in Australia.

Deposit Amount
Applicants must hold a minimum deposit of 5% deposit of the property value but less than 20%.

Owner Occupier Condition
The FHLDS has been created to support purchasers to buy their first home to live in, not for investors. Therefore, you will need to reside in the property within 6 months of settlement or once the certificate of occupancy for the home has been issued. You must also continue to live in the property for as long as your home is secured under the scheme.  If you cease living in the property, your home loan will not be guaranteed under the scheme.

Property Value
If you are purchasing in Melbourne Metropolitan area or regional areas (such as Geelong) the total value of the property must not be in excess of $600,000.

For more information on the First Homeowners Scheme please visit https://www.nhfic.gov.au/what-we-do/fhlds/

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