The First Home Loan Deposit Scheme is a Australian Government initiative to support eligible first home buyers purchase a home sooner. It does this by providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5 per cent (lender’s criteria apply), which allows the client to avoid paying LMI.
Since starting on 1 January, the CBA and NAB have registered 3,000 potential first home buyers under the First Home Loan Deposit Scheme.
The remaining 7,000 Scheme places for the current financial year will be available from 1 February 2020 when potential applicants will have a panel of 27 lenders to choose from.
NHFIC is releasing 10,000 First Home Loan Deposit Scheme guarantees this financial year. Another 10,000 places will be available from July 2020.
The staged release of Scheme places provides first home buyers with the opportunity to gather the necessary financial information to support their application and enables a broader choice between the major banks and smaller lenders. Twenty-five smaller lenders join the Scheme’s lending panel on 1 February.
Its possible to qualify for the scheme and obtain the FHOG.
All participating lenders have committed not to charge eligible first home buyers higher interest rates than equivalent customers outside of the Scheme.
The key checks for your personal circumstances are:
If a spot is reserved in the scheme, but you don’t obtain loan approval or buy a property in the timeframe required, you lose their spot in the scheme and the lender will let the next person on the waiting list know, and the client will need to reapply to the scheme.
Non-major lenders participating in the scheme: