Jan 13, 2020 7:39:00 AM

First Home Owners Deposit Scheme – All You Need to Know

Topics: Home Ownership, Financial Advice, Home Loan Advice, Buying property in Australia, Australia Mortgage Broker, First Home Loan Deposit Scheme 0

On 1 January 2020, the Australian Government’s First Home Owners Deposit Scheme kicked off and already hundreds of Aussies have signed up to the scheme. Aimed at supporting eligible first home buyers purchase a home sooner, the scheme allows first home buyers to put down just five per cent deposit, with the National Housing Finance and Investment Corporation (NHFIC) guaranteeing the rest of what would normally be a 20 per cent deposit. Here’s all you need to know.

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Are you eligible?

Those applying for the loans will need to meet certain eligibility criteria. You must:

  • Earn under $125,000 a year for singles and $200,000 for couples.
  • Intend to live in the home (investment properties aren't supported).
  • Not have owned or had a share in property previously.

To help first home buyers find out if they meet the scheme’s eligibility criteria, the NHFIC has developed a tool – you can click here to view the tool. 

How much can you borrow?

There are limits to how much Australians can borrow under the scheme and these vary by state and region:

NSW

Sydney, Newcastle, Lake Macquarie, Wollongong/Illawarra: $700,000

Rest of the state: $450,000

VICTORIA

Melbourne, Geelong: $600,000

Rest of the state: $375,000

QUEENSLAND

Brisbane, Gold Coast, Sunshine Coast: $475,000

Rest of the state: $400,000 

WA

Perth: $400,000

Rest of the state: $300,000

SA

Adelaide: $400,000

Rest of the state: $250,000

TASMANIA

Hobart: $400,000

Rest of the state: $300,000

ACT

$500,000

NT

$375,000

How do you apply?

Currently, NAB and Commonwealth offer loans but a further 25 non-major lenders, including Bendigo Bank, CUA and Bank Australia, will begin offering loans from February 1.

All participating lenders are supporting the scheme by not charging eligible customers higher interest rates than equivalent customers outside the scheme.

If you have questions about the First Home Owners Deposit Scheme or you’d like help checking your eligibility, contact a Mortgage Express broker today. Simply complete this online form and one of our brokers in your area will be in touch to discuss further.


Disclaimer:

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.

Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Australian Financial Complaints Authority (AF