FHLDS – First Home Loan Deposit Scheme – How to avoid the waiting list

What is the FHLDS Scheme?

Usually first home buyers are required to have saved up a 20% deposit or take out lenders mortgage insurance (LMI).

The FHLDS scheme is a new scheme guaranteeing 10,000 low deposit home loans with the borrowers only requiring as little as a 5% deposit and without paying lenders mortgage insurance.

This could save first home buyers $10,000- to $40,000 depending on deposit size, loan amounts etc.

Are there any spots left?

When the First Home Loan Deposit Scheme (FHLDS) released 10,000 spots – 5,000 were released to the NAB and CBA. These 5,000 spots filled up almost immediately. The remaining 5,000 spaces were released to 25 ‘non-major lenders.’

Whilst the NAB and CBA no longer have any available spots, there are still spots available with these 25 non-major lenders.

Same opportunity, better rates and packages are on offer… in fact there is no negative except the name of the lender.

What are the Conditions?

The main conditions are;

1. First home buyers having never owned property in Australia
2. All parties are Australian Citizens (note, unlike the first home owners grant, Permanent Residents and NZ citizens are not eligible) *I found this out the hard way, sorry Danny and Jessi ☹
3. There are income thresholds – maximum income for single applicant is $125,000 and for a couple is $200,000
4. There are maximum purchase price thresholds depending on your location. As an example, in NSW major city/regional area its $700,000, in Qld the maximum purchase price is $475,000.

To check full FHLDS eligibility requirements go to www.nhfic.gov.au

It presents an opportunity for your friends and family who are first home buyers to get into the market without a 20% deposit and pay no mortgage insurance.

There is a hard cap of 10,000 FHLDS loans for the calendar year, as this year is a trial year – at the moment about 4,000 places remain.

With so few spots remaining it might be wise to prod anyone you know who could qualify for the FHLDS to pick up the phone and calling +61 07 2143 8230 or emailing us and we’ll help them navigate it, or maybe even find them another way to get into their first home.

Photo Credit – Sandy Millar