First Home Loan Deposit Scheme (New Homes)

Buying your first home can be a daunting experience, as it’s probably one of the biggest purchases you’ll ever make.

So, to support you in your first home buyer journey, the Australian Government launched the First Home Loan Deposit Scheme. The Scheme is a Government guarantee designed to help first home buyers on low and middle incomes to purchase their first home a little sooner.

The good news is that the Government have launched an additional 10,000 First Home Loan Deposit Scheme places for the 20-21 financial year, known as  First Home Loan Deposit Scheme (New Homes). We’ve been approved by the Australian Government as a FHLDS (New Homes) lender by the National Housing Finance and Investment Corporation (NHFIC) to offer you this option.

As a member-owned lender it’s our purpose to provide you with better banking products, and being chosen as an approved lender is another reflection of how we can provide this benefit to first home buyers like you. 

What is the First Home Loan Deposit Scheme (New Homes)?

As a first home buyer, the scheme is designed to support you by providing a guarantee to your bank that allows you to use a deposit of as little as 5 percent when buying your first home.

Normally, anyone purchasing a property will need to save a 20% deposit (based on the property value) in order to avoid forking out extra to pay for Lenders Mortgage Insurance (LMI). Taking advantage of the First Home Loan Deposit Scheme (New Homes) will allow you to bypass Lenders Mortgage Insurance without having to stress about providing an extra 15% in your deposit.

As a first home buyer you can use the FHLDS (New Homes) in combination with a few other government programs like the First Home Super Saver Scheme, state and territory First Home Owner Grants and stamp duty concessions. However, you will need to keep in mind that limited FHLDS (New Homes) places are available through the NHFIC for the 2020-21 financial year.

Am I eligible?

If you’re a first home buyer looking to take advantage of the FHLDS (New Homes) you will need to check if you are eligible. Use this tool developed by NHFIC to help you work out if you meet the eligibility criteria.

The eligibility criteria will relate to:

  • Minimum age
    • The Scheme is only open to persons that are 18 years of age or over.
    • The minimum age test requires you to be 18 years of age or over at the time you enter into a home loan.
  • Citizenship 
    • The Scheme is only open to current Australian citizens.
    • The citizenship test for you being an ‘eligible first home buyer’ for the Scheme is that you will need to be an Australian citizen at the time you enter into a home loan with your participating lender.
    • If you are applying under the Scheme as part of a couple, you will both need to be Australian citizens.
    • The Scheme is not open for permanent residents who are not Australian citizens.
  • Income thresholds 
    • These will be up to $125,000 per annum for singles and up to $200,000 per annum for couples (assessed in the financial year preceding the financial year in which the loan is entered into).
    • Couples will only be eligible if they are in a de-facto relationship or married.
    • For all Scheme places reserved from 1 July 2020, you will need to provide a copy of your Notice of Assessment from the Australian Taxation Office for the 2019-20 financial year.
  • Property prices
    • The Scheme is only available for modest homes (a list of the allowable property types is shown below) and will be subject to property price thresholds. For Queensland the price cap will be up to $650,000 for capital cities and regional centres (Gold Coast and Sunshine Coast) and up to $500,000 for other areas in Queensland. For the full list of property price thresholds see here.
    • To find out the property price threshold of a suburb you a looking to buy in you can try the NHFIC tool here.
  • Deposit 
    • You must have a deposit of between 5 and 20 per cent of the property’s value. If you have a deposit of more than 20 per cent, then you will be unable to participate in the Scheme. 
  • Residency 
    • You must reside in the property as your principal place of residence (i.e. you must be an owner occupier) within six months from the date of settlement or, if later, the date an occupancy certificate is issued, and continue to live in that property for as long as your home loan has a guarantee under the Scheme.
  • Repayments 
    • Loans under the Scheme require consistent scheduled repayments of the principal of the loan for the full period of the agreement. If the loan is used to purchase both vacant land for the construction of a house on the land, the loan may be an eligible loan even if the terms of the loan agreement permit interest-only repayments for a specified period.
  • First home buyers only
    • You must be a first home buyer who has not previously owned or had an interest in a property either separately or jointly with someone else.

What kind of property can I buy under the First Home Loan Deposit Scheme (New Homes)?

You can buy:


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Each property has relevant dates and requirements when it comes to applying for the Scheme, so visit here for more information. 

How do I apply?

Applications are open and can be lodged through Queensland Country Bank and our approved brokers. You can register your interest by completing the form below and one of our Home Loan Specialists will be in touch with you shortly.

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Please note that NHFIC will not accept applications directly.

To find out more information you can download the NHFIC fact sheet or visit their website www.nhfic.gov.au

Other First Home Buyer Assistance


HomeBuilder forms part of the Federal Government’s Economic stimulus package resulting from Coronavirus (COVID-19) and is available for a limited time to eligible people looking to substantially renovate or build a home until 31 December 2020.

HomeBuilder allows those eligible to build a new home as a principal place of residence, where the property value does not exceed $750,000 or substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000.

To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:

  • You are a natural person (not a company or trust)
  • You are aged 18 years or older
  • You are an Australian citizen
  • You meet one of the following two income caps:
    • $125,000 per annum for an individual applicant base on your 2018-19 tax return or later
    • $200,000 per annum for a couple based on both 2018-19 tax returns or later;
  • You enter into a building contract between 4 June 2020 and 31 December 2020 to either:
    • Build a new home as a principal place of residence, where the property value does not exceed $750,000
    • Substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5 million
    • Construction must commence within three months of the contract date

Click here to access the HomeBuilder fact sheet.

Frequently asked questions on HomeBuilder can also be seen here

First Home Owners Grant

The First Home Owner Grant (FHOG) scheme was introduced in July 2000 to offset the cost of GST when you buy your first home. The national scheme varies from state-to-state as it's funded by the states and territories and administered under their own legislation.

Under the scheme, first home buyers will be given a one-off grant once all eligibility criteria is met. 

If your contract is dated 1 July 2018 or later, you may be eligible for the Queensland grant of $15,000 towards buying or building your new house, unit or townhouse (valued at less than $750,000).  The grant is paid per new home; not to each of the applicants for the same home (The grant amount has varied since it was first introduced in 2000.  Contracts dated earlier than 1 July 2018 may still be eligible for a grant).

You can buy off the plan or choose to build yourself.

To be eligible for the grant:

  • You must be at least 18 years of age
  • You must be an Australian citizen or permanent resident (or applying with someone who is)
  • You or your spouse must not have previously owned property in Australia that you lived in
  • You must be buying or building a brand new home
  • The value of the home including the land is less than $750,000
  • You must move into the new home as your principal place of residence within 1 year of the completed transaction and live there continuously for 6 months

View further information on the Queensland's First Home Owner Grant.

Stamp Duty Concessions

Stamp Duty is a tax applied to property transactions (including home and land packages, land or investment property) that is charged differently by each state and territory. To find out the stamp duty for the state you are interested in buying in, see here

Depending on your state or territory you may be eligible for a concession on stamp duty if you are a first home buyer. 

The First Home Super Saver Scheme

The First Home Super Saver (FHSS) scheme allows you to save for a home loan deposit on your first home using your super fund. This scheme allows first home buyers to save faster with the concessional tax treatment of superannuation. 

First home buyers can then withdraw on the voluntary funds saved within the scheme and put it towards their first home. More information can be found via the ATO's website.