The National Housing Finance Investment Corporation (NHFIC) are currently working to make these First Home Loan Deposit Scheme (FHLDS) 2019-20 places available to first home buyers through participating lenders as soon as possible.
Home buyers are reminded that the First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase their first home sooner.
Usually first home buyers with less than a 20 percent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase a modest home with a deposit with as little as 5 percent (lender’s criteria also apply). The lower deposit is possible because NHFIC guarantees the participating lender up to 15 percent of the value of the property purchased through an eligible first home buyer’s home loan.
The guarantee is not a cash payment or a deposit for your home loan.
Eligible FHLDS properties
To be eligible for the Scheme, the property must meet the following requirements;
- be a ‘residential property’ – this term has a particular meaning under the Scheme, and you should ask your lender if there is any doubt
- have a purchase price (and value) under the price cap for its location
- be purchased by an eligible first home buyer under the Scheme
- list you as the sole registered owner/s of the property at the settlement date for your home loan
- be a property which is (1) an established dwelling, or (2) a new-build dwelling that is purchased under a house and land package, a land and separate contract to build a home or an ‘off-the-plan’ arrangement that is financed under an Eligible Loan from a participating lender.
It’s important to note that the reissued FHLDS guarantees differ from the First Home Loan Deposit Scheme (New Homes)