In July last year, the Australian Government released the First Home Loan Deposit Scheme (FHLDS). The Scheme is intended to support eligible first home buyers fast track the purchase of a home. Since then, there has been a lot of discussion about the scheme, how it works, and how it can be accessed. We’ve answered some of the main questions about the scheme. If you have any others, feel free to reach out to us here.
What is the purpose of the FHLDS, and who is managing it?
In July 2018, the Government created the National Housing Finance and Investment Corporation (NHFIC) - a corporate Commonwealth entity which was tasked with improving housing affordability for Australians. Among other initiatives, the NHFIC then launched the FHLDS. What are the benefits of the Scheme? In order to be approved for a home loan, many lenders require applicants to save up to 20% of the purchase price as a deposit – or be subjected to additional costs and conditions such as Lenders Mortgage Insurance, or Loan Guarantors. Under the Scheme, first home buyers with less than 20% deposit are able to apply for assistance. If approved, the NHFIC will guarantee a portion of your loan – enabling you to secure your first home loan with a reduced deposit of as little as 5% of the property purchase price.
What are the restrictions?
Is there a limit to the number of applicants who can receive the NHFIC guarantee?
Not all applicants who meet the criteria will be successful in receiving the guarantee. There are a limited number of places available, with 10,000 released since July 2019 (all of which are now exhausted) and another 10,000 places to be available in July 2020.
These places will be divided between:
Check your eligibility.
Once you have taken these steps and secured your place, it’s time for the fun part – finding your dream property! Review our properties for sale, and Newcastle suburb profiles for more information, or give us a call to talk to our team of Street Property experts.