If you’re a first-time homebuyer, you may be eligible for the First Home Loan Deposit Scheme (FHLDS). This scheme is designed to help eligible first-time buyers purchase a home with a deposit as low as 5%, without needing to pay for lender’s mortgage insurance. But what are the eligibility criteria for the FHLDS? In this blog post, we’ll explore the key requirements for the scheme, including income thresholds, property price caps, and more.
One of the main eligibility criteria for the FHLDS is the income threshold. To be eligible for the scheme, you must earn below a certain amount, which varies depending on your location and household size. In general, the income thresholds for the FHLDS are:
- $125,000 per annum for singles
- $200,000 per annum for couples
These thresholds are based on the borrower’s taxable income, as shown on their Notice of Assessment from the previous financial year. It’s important to note that if you’re applying for the FHLDS as a couple, both applicants’ incomes will be considered.
In addition to the income thresholds and property price caps, there are a number of other eligibility criteria for the FHLDS. These include:
- Citizenship: To be eligible for the FHLDS, you must be an Australian citizen or permanent resident.
- Age: You must be at least 18 years old to apply for the FHLDS.
- First-time buyer: You must be a first-time homebuyer, which means you have not previously owned or had an interest in a residential property in Australia.
- Owner-occupier: The property you purchase must be your primary place of residence, and you must move into the property within 6 months of settlement.
- Deposit: You must have a deposit of at least 5% of the purchase price, and you cannot borrow more than 95% of the purchase price.
- Loan type: The FHLDS is only available for certain types of loans, including principal and interest loans and variable rate loans.
The First Home Loan Deposit Scheme is a great opportunity for first-time homebuyers to get into the property market with a lower deposit. However, it’s important to understand the eligibility criteria for the scheme, including income thresholds, property price caps, and other requirements. By meeting these criteria and applying through a participating lender, you can take advantage of this scheme and buy your first home sooner.