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First Home Loan Deposit Scheme (First Home Guarantee)

What is FHLDS?

To help first-time homeowners, the Australian government launched the First Home Loan Deposit Scheme (FHLDS),  also known as the First Home Guarantee. A problem most aspiring homeowners have is the lack of the 20% deposit required to get a loan for a house. Getting a loan with less than the deposit amount is possible but applicants need to pay for the lender’s mortgage insurance (LMI) which can easily sum up ot a thousand dollars. 

To help, the government, through the National Housing Finance and Investment Corporation (NHFIC) will guarantee part of the required deposit. Applicants only need a minimum of 5% of the deposit and the rest (up to 15%) will be shouldered by the NHFIC.

This is not in cash form. There are participating lenders under agreement with the government to execute the program. 

Who are eligible to apply for FHLDS?

  •  Australian citizens who are at least 18 years of age.
  • Individual income must be a maximum of $125,000 per year, and a couple’s earnings can be a combined total of $200,000.
  • Couples are only eligible for the Scheme if they are married or in a de facto relationship. 
  • Applicants must have a deposit of between 5% and 20% of the property’s value.
  • The scheme will only serve 10,000 applications per year, on a first come first serve basis.
  • Properties that are being purchased under the scheme must be classed as an ‘entry property’ and will not include high-value properties.
  • Price caps are determined by region. A full list of price caps is outlined below.

What is the property cap per state for FHLDS?

RegionPrice Cap ($AUD)
NSW – capital city, regional centres (Newcastle, Lake Macquarie & Illawarra)$800,000
NSW – other$600,000
VIC – capital city, regional centre (Geelong)$700,000
VIC – other$500,000
QLD – capital city, regional centres (Gold Coast & Sunshine Coast)$600,000
QLD – other$450,000
WA – capital city$500,000
WA – other$400,000
SA – capital city$500,000
SA – other$350,000
TAS – capital city$500,000
TAS – other$400,000
Northern Territory$500,000
Jervis Bay Territory & Norfolk Island$550,000
Christmas Island & Cocos (Keeling) Island$400,000

How to apply?

You can apply through any participating lender. The NHFIC does not accept direct applications. All applicants must go through the process provided by each lender. 

Need help applying? Call us so we can help you, and answer any questions you have.