First Home Loan Deposit Scheme 2020

15 January 2020

You don’t have to sit around and wait to save up to buy your very first house. The First Home Loan Deposit Scheme has been introduced by the Australian Government to help encourage First Home Buyers to get into the property market faster, by supporting 10,000 low-deposit home loans per year.

In more recent times, Australian home buyers have had to save up a large deposit of at least 20% of the purchase price to avoid Lender’s Mortgage Insurance (LMI) or relying on a guarantor.

Now, thanks to this new scheme, first home buyers can breathe again by being able to purchase a home with as little as a 5% deposit. The National Housing Finance and Investment Corporation (NHFIC) has committed to cover the remaining 15% of the property’s value for eligible candidates.

From the word, “go”, we have already seen a staggering number of enthusiastic first home buyers take advantage of this opportunity - January 1st, 2020 saw the banks register 3,000 potential first home buyers.

The remaining 7,000 loans will become available from February 2020 – applicants will have a panel of 27 lenders to choose from – these will include major banks and small lenders.  

If you’re not able to buy a house this financial year and take advantage of this offer, don’t stress, the NHFIC has decided to release an additional 10,000 places from July,2020.

To apply, contact participating lenders and lodge your application through their representatives.

For more information, download our FHLDS Factsheet or visit the FHLDS website.