Benevolence Financial Group (BFG) is now Open Home Loan. Start home loan rate tracking and let Open automatically shop around for you – over your loan duration. When your ideal rate is reached, we’ll ask your bank to match it. Choose to stay or switch in minutes. No effect on credit score. Start for free.

What is the first home buyer deposit scheme? Who is eligible to avail this service?



< 1 Mins

Share this post

Aspiring homeowners in Australia often face one major hurdle when it comes to buying their first property: saving up for a sufficient deposit. In response to this challenge, the Australian government introduced the First Home Loan Deposit Scheme (FHLDS) to help eligible first-time buyers get onto the property ladder sooner.

Q: What is the First Home Loan Deposit Scheme (FHLDS)?

A: The First Home Loan Deposit Scheme is a government initiative designed to assist first home buyers to purchase a home with a deposit as little as 5% of the property’s value, without having to pay Lender’s Mortgage Insurance (LMI). LMI is typically required by banks when a borrower has less than 20% deposit, and it can cost thousands of dollars upfront. The FHLDS allows first home buyers to avoid this cost and enter the property market with a lower deposit.

Q: Who is Eligible for the FHLDS?

A:  To be eligible for the First Home Loan Deposit Scheme, you must meet the following criteria:

  1. Be an Australian citizen aged 18 years or over (permanent residents are not eligible).
  2. Have never owned or co-owned a property in Australia before.
  3. Have a taxable income of up to $125,000 per annum for singles or $200,000 for couples (based on the previous financial year’s income).
  4. Have at least 5% of the property’s value as a deposit.
  5. Plan to use the property as your primary place of residence.
  6. Meet the lender’s eligibility criteria.

It’s important to note that there are only a limited number of places available under the FHLDS each year, and they are allocated on a first-come, first-served basis. This means that you’ll need to act quickly to secure a spot in the scheme.

Send Us a question

Have something in mind?