The First Home Loan Deposit Scheme is an Australian Government initiative to assist eligible first home buyers get into the home ownership market with a deposit as low as 5% and avoid paying lenders mortgage insurance.

The Scheme will commence on 1 January 2020 and will be limited to support 10,000 loans each financial year, this means first in best dressed. Applications will not be available until the scheme commencement on 1 January 2020.

How does it work?

There are lenders who will allow customers to take out a loan with a 5% deposit however they do charge Lenders Mortgage Insurance (LMI) to the customer which can run into the tens of thousands of dollars. Usually the only way to avoid LMI is to have a minimum deposit of 20% which can be extremely difficult for first home buyers. This new scheme will guarantee the first home buyer’s loan for the outstanding 15% so no LMI is charged.

From 1 January 2020 an Assured Lending Mortgage Broker can apply for the scheme on behalf of eligible first home buyers with one of the approved panel of lenders. Not every Lender will be approved for the first home loan deposit scheme so it’s important to speak with your Mortgage Broker about eligible loan options that best suit your needs.

The first home deposit scheme can also be used in conjunction with the First Home Super Saver Scheme which allows first home buyers to withdraw voluntary superannuation contributions from their super fund to be used towards their deposit. The limit you can withdraw is $30,000 for singles and $60,000 for couples.

Eligibility criteria for the first home loan deposit scheme?

• Individuals who earn up to $125,000 per year or couples with a combined income of up to $200,000. (based on the previous financial year income)
• Must have genuine savings of at least 5% of the property value
• Must be Australian Citizens who are minimum 18 years of age
• Couples must be either married or in a defacto relationship. Other person buying together such as siblings, friends or parent and child are not eligible.
• Loans must be for owner occupied purposes with principal and interest repayments
• Must be first home buyers who have not had previous ownership or interest in a residential property.
• Home loan taken must be from an approved first home loan deposit scheme lender
• Maximum property purchase prices as per table below

Capital city and regional centres Rest of state
NSW $700,000 $450,000
VIC $600,000 $375,000
QLD $475,000 $400,000
WA $400,000 $300,000
SA $400,000 $250,000
TAS $400,000 $300,000
ACT $500,000
NT $375,000

Download a fact sheet on The First Home Loan Deposit Scheme here

Contact an Assured Lending Mortgage Broker for more information today




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