First Home Loan Deposit Scheme (FHLDS)

First Home Loan Deposit Scheme (FHLDS)

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).

Scheme places

Since starting on 1 January, the banks 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.


NHFIC has developed a tool to help first home buyers find out whether they meet the Scheme’s eligibility criteria. Some of the criteria include: Australian Citizens who are at least 18 years of age. Permanent residents are not eligible.

Singles with a taxable income of up to $125,000.00 per annum for the previous financial year and couples with a taxable income of up to $200,000.00 per annum for the previous financial year.

Couples are only eligible for the scheme if they are married or in a defacto relationship with each other. Other persons buying together including siblings, parent/child or friends are not eligible for the scheme.

The scheme is to assist singles and couples together who have at least 5% of the value of an eligible property saved as a deposit. If you have 20% or more saved for a deposit then your home loan will not be eligible for the scheme.

Applicants must intend to be the owner occupiers of the property. Investments properties are not supported by the scheme. Applicants must be first home buyers who have not previously owned or hand an interest in a property in Australia either separately or jointly with someone else.

Types of property that can be brought under the scheme:
• An existing house , townhouse or apartment
• A house and land package
• Land together with a separate contract to build a home
• An off the plan apartment or townhouse.

Further specific eligibility requirements and property thresholds apply. For further information please follow the link to and speak with your broker.