First Home Loan Deposit Scheme
03-Dec-2019
What is the first home loan deposit scheme?
Introduced by the Australian Government, the scheme helps to support eligible first home buyers on low and middle incomes. The scheme will allow these first home buyers to purchase a home with a deposit of as little as 5% of the property's value.
The scheme will support 10 000 first home loan guarantees each financial year. Any of the borrowers that are eligible for the scheme can also use the guarantee in conjunction with other government programs. Other programs could include the First Home Super Saver Scheme, state and territory First Home Owner Grants and stamp duty concessions.
When does the scheme start?
The scheme starts 1st January 2020
* Applications for the scheme are not yet open
What type of property can be bought under the scheme?
- An existing house, townhouse or apartment
- A house and land package
- Land together with a separate contract to build a home
- An off the plan apartment or townhouse
Who is eligible for the scheme?
- Australian Citizens, that are over 18 years old (permanent residents are not eligible)
- Singles with a taxable income of up to $125 000 per annum and couples with a taxable income of $200 000 per annum. (Incomes will be assessed for the financial year preceding the financial year in which the loan is entered into.)
- Couples must be married or in a de-facto relationship to be eligible. (other persons buying together such as siblings, parent/child or friends are not eligible)
- Applicants must have a deposit between 5% and 20% of the property's value
- Its required that scheduled repayments of the loan are paid for the full period of the agreement
- You must intend to move in and live in the property as your principal place of residence
- This must be the first time you have purchased a home for all parties involved. (Applicants must not have previously owned a residential property, even if it was jointly owned with someone else. It also includes residential strata and company title properties, regardless of whether it was an investment or owner occupied property and whether it was ever lived in or not.)
Do property price thresholds apply?
In short, yes.
The motive of the scheme is to help people buy their first home and the value of the property must not exceed the price cap in which the area it is located.
How to apply
Once applications are opened they will be managed through the website here
Introduced by the Australian Government, the scheme helps to support eligible first home buyers on low and middle incomes. The scheme will allow these first home buyers to purchase a home with a deposit of as little as 5% of the property's value.
The scheme will support 10 000 first home loan guarantees each financial year. Any of the borrowers that are eligible for the scheme can also use the guarantee in conjunction with other government programs. Other programs could include the First Home Super Saver Scheme, state and territory First Home Owner Grants and stamp duty concessions.
When does the scheme start?
The scheme starts 1st January 2020
* Applications for the scheme are not yet open
What type of property can be bought under the scheme?
- An existing house, townhouse or apartment
- A house and land package
- Land together with a separate contract to build a home
- An off the plan apartment or townhouse
Who is eligible for the scheme?
- Australian Citizens, that are over 18 years old (permanent residents are not eligible)
- Singles with a taxable income of up to $125 000 per annum and couples with a taxable income of $200 000 per annum. (Incomes will be assessed for the financial year preceding the financial year in which the loan is entered into.)
- Couples must be married or in a de-facto relationship to be eligible. (other persons buying together such as siblings, parent/child or friends are not eligible)
- Applicants must have a deposit between 5% and 20% of the property's value
- Its required that scheduled repayments of the loan are paid for the full period of the agreement
- You must intend to move in and live in the property as your principal place of residence
- This must be the first time you have purchased a home for all parties involved. (Applicants must not have previously owned a residential property, even if it was jointly owned with someone else. It also includes residential strata and company title properties, regardless of whether it was an investment or owner occupied property and whether it was ever lived in or not.)
Do property price thresholds apply?
In short, yes.
The motive of the scheme is to help people buy their first home and the value of the property must not exceed the price cap in which the area it is located.
How to apply
Once applications are opened they will be managed through the website here