First Home Loan Deposit Scheme

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What is the First Home Loan Deposit Scheme?

What is the First Home Loan Deposit Scheme?

A 5% deposit to buy you your First Home?

There is a scheme with the federal governments, he First Home Loan Deposit Scheme, re-commenced in the 1st of July 2020, for limited slots. Eligible first home buyers are allowed to purchase a property with only a 5% deposit, saving yourself up $10,000.00 by voiding the Lender’s Mortgage Insurance (LMI). Only 10,000 slots are available for this financial year so you need to secure yourself a slot.

What is the First Home Loan Deposit Scheme?

The Australian Government provided the First Home Loan Deposit Scheme as a support to First Home Buyers to assist them as they purchase their first home. Under the said scheme a First time Home Buyer needs that is considered to be eligible may purchase their home, provided they follow certain criteria, with a deposit of as low as 5%. It would constitute a waiver of the LMI which is incurred in order for them to pay less than 20% of the deposit which can cost around $10,000.

The First Home Buyer’s loan is the guarantee of the Australian Government to the participating bank that up to15% of the required deposit will be financed.

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How do I apply in the First Home Loan Deposit Scheme?

Application for the First Home Loan Deposit Scheme is done directly with the participating lenders and not through the Australian Government. Note that there are 27 participating lenders that you can apply to. There are also different eligibility criteria if you are applying as a ‘single’ or as a ‘couple’. Application can only be changed by withdrawing the original application lodged, and submit a new one. However, this entails forsaking your place in the application process.

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