Government Schemes - First Home Loan Deposit Scheme (FHLDS)

07 Feb 2021

Congratulations if you are looking at buying or building your first home! If you have read our blog on Government Schemes for First Home Buyers, here is more information about the First Home Loan Deposit Scheme.

First Home Loan Deposit Scheme FHLDS (New Homes)

First-home buyers can apply for the First Home Loan Deposit Scheme which will allow eligible singles and couples to pay a minimum deposit 5% of the value of the property on their first home.

This is because, under the FHLDS scheme, the government acts as a guarantor, enabling borrowers to not pay a Lenders Mortgage Insurance (LMI).

Lenders Mortgage Insurance (LMI) applies when buying with a deposit of less than 20% of the value of the property.

Eligibility 

The scheme is only available to owner-occupiers, meaning not for investment properties and both new and existing residential properties are eligible.

Eligible singles must have a taxable income under $125,000 in the previous financial year.

Eligible couples must have a taxable income under $200,000. Please note that the definition of an eligible couple is married or in a de factor relationship, meaning siblings, friends or relatives buying together are not eligible.

Limited Schemes Available

There are only 10,000 First Home Loan Deposit Scheme places available per financial year (released on the 1st of July each year).

As part of the 2020-2021 budget announcement, the federal government added 10,000 new Scheme places to the FHLDS (New Homes). However, these new Scheme places are being limited to new or newly built properties. 

If you’re wanting to give yourself the best chance of grabbing a First Home Loan Deposit Scheme for your first home, it is best to finalise your tax returns as soon as possible as you need your Notice of Assessment from the Australian Taxation Office (ATO) to apply.

Where can I find out more?

As Grants can change and be updated regularly it is important that you check the Queensland Government site Queensland First Home Owners' Grant | Homes and housing | Queensland Government (www.qld.gov.au)

Buying from MyHouse

Trust is the most important factor and myhouse is committed to its clients, both our Sellers and Buyers. We want you to feel confident when you’re purchasing your first home and knowledgable of what is available to you. Contact us today if you’re interested in any of our properties and keep reading our Blogs if you’d like to learn more!