First Home Loan Scheme

Everything you need to know about First Home Loan Deposit Scheme (FHLDS)

Now that several industries are considering making remote working a permanent set-up, having a nice home of your own is more of a great investment than ever before.

It can take a lot of time to save enough for a property on top of all the things that must be considered, making renting a better option. Fortunately, there’s a solution. Through the First Home Loan Deposit Scheme (FHLDS), your own dream home may be more within your reach than you realise.

So, if you’re thinking of buying your first home this year, here’s everything you need to know about the FHLDS program.

What is the First Home Loan Deposit Scheme (FHLDS)?

To make homes more accessible to Australians, the Australian Government has established and strengthened an initiative that will help to make buying and building homes easier for first-time homeowners.

This is the First Home Loan Deposit Scheme (FHLDS) facilitated by the National Housing Finance and Investment Corporation (NHFIC).

Without this scheme, first home buyers with less than a 20% deposit need to pay lenders mortgage insurance – which can add a further financial burden to the purchase. However, under the FHLDS, part of an eligible first home buyer’s home loan from a Participating Lender will be guaranteed by NHFIC. This means that you can secure your own home with as little as a 5% deposit.

The following properties can be purchased using the FHLDS:

  • an existing house, townhouse or apartment
  • a house and land package
  • a land and a separate contract to build a home
  • an off-the-plan apartment or townhouse

You can read more about FHLDS in this fact sheet: FHLDS Fact Sheet.

Who can apply for FDLHS?

As promising as this scheme may sound, there are things to make note of to be eligible for an FDLHS grant. Answer these questions to see if you can apply:

  • Are you a first home buyer who has never owned any residential property – whether as an investment or owner-occupied?
  • Have you earned no less than $125,000 (for individuals) or $200,000 (for couples) in the last financial year?
  • Are you thinking of buying your first home with your spouse or someone you’re in a de facto relationship with?
  • Are you at least 18 years old with a valid Medicare card or Defence ID?
  • Are you an Australian citizen with a valid Australian passport or proof of Australian citizenship?

If you answer ‘yes’ to all of these questions, then you’re most likely eligible for a home loan guarantee under this scheme. You can review the criteria as well as the application details here: NHFIC website.

Now is a great time to buy your first home.

In early July, the NHFIC announced 10,000 additional FDLHS places for the 2021-22 financial year. So, if you’re looking for a sign to finally get your own home, this is it!

Along with this great news is Upstate’s continued commitment to supporting this initiative. You can take advantage of this opportunity to purchase your own first home with the help of our team of dedicated Financial Experts.

Your local Upstate real estate specialists can make your dream home a reality. Our personalised service will ensure you get the most out of your property and help you with the First Home Loan Deposit Scheme.

It’s time to find yourself in a better place

Speak to your local Upstate team and we’ll help you get your dream home for yourself and your family today.

We look forward to chatting with you soon. 

Your local Upstate team  

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