Purchasing a home is a big financial decision, especially for first-time buyers. The Australian government has implemented a scheme called the First Home Loan Deposit Scheme (FHLDS) 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 is the maximum value that can be purchased under the scheme? In this blog post, we’ll explore the property price caps for the FHLDS and give you a better idea of what you can afford.
Property Price Caps
The FHLDS has property price caps that determine the maximum value of a property that can be purchased under the scheme. These caps vary depending on the location of the property, as determined by the Australian Bureau of Statistics (ABS).
In general, the property price caps for the FHLDS are:
- $700,000 for properties in the Sydney metropolitan area
- $600,000 for properties in the Melbourne metropolitan area
- $475,000 for properties in the Brisbane metropolitan area
- $400,000 for properties in the Perth metropolitan area
- $475,000 for properties in the Adelaide metropolitan area
- $400,000 for properties in the Hobart metropolitan area
- $500,000 for properties in the ACT
- $400,000 for properties in the Northern Territory
It’s important to note that these caps apply to the purchase price of the property, not the value of the property once it’s been built or renovated.
The First Home Loan Deposit Scheme is a great opportunity for first-time homebuyers to purchase a home with a lower deposit and without the need to pay for lender’s mortgage insurance. However, it’s important to understand the property price caps for the scheme and find properties within your budget. By working with a real estate agent and using online property search engines, you can find affordable properties that are eligible for the FHLDS and take advantage of this scheme to buy your first home sooner.