Beginning 1 January 2020, the Australian Government developed an initiative to support qualified home buyers purchase their first home. Appropriately named, the First Home Loan Deposit Scheme, or FHLDS for those in the know.
Directed towards first home buyers on low to middle incomes, the scheme comes with a guarantee to assist in purchasing or building a modest home with a deposit from as low as just 5% – though separate lenders criteria must be met. Prospective applicants can choose from multiple lenders participating in the scheme and currently these range from major banks to smaller lending organisations with new lenders still jumping on board and joining in the scheme in early February.
There’s a lot to research and think about when it comes to taking your first step on the property ladder, you can click here and download your own First Home Loan Deposit Scheme Fact Sheet.
The reaction to the scheme has been strong, with 10,000 scheme places made available in the first release, a whopping 3,000 registered within the first few weeks! And these numbers continue to rise.
There are several criteria that applicants will need to meet in order to satisfy eligibility, including but not limited to;
- an income test
- prior property ownership
- minimum age
- deposit requirement
In addition to the criteria there are restrictions on the type of property you can purchase as the initiative is designed to get first home buyers on the property ladder in a modest home, with a maximum threshold of $400,000 in Western Australia’s capital city.
If you’d like to access the most frequently asked questions, please click here. Or to find out more about your suitability for the First Home Loan Deposit Scheme, contact us.