First Home Loan Deposit Scheme
As roman poet Horace once said “Carpe Diem”, translated to “Seize the day”, the Australian Government’s extension of the First Home Loan Deposit Scheme (FHLDS) is making it possible for first home buyers to seize property opportunities they would otherwise miss out on.
First launched on 1 January 2020, the Australian Government FHLDS enables eligible first home buyers to apply for a loan through participating lenders to purchase an existing or new home with only a 5% deposit, also bypassing additional fees of Lenders Mortgage Insurance. A further positive is that the Scheme can be used in conjunction the First Home Super Saver Scheme, Home Builder Grant along with any first home owner grants and stamp duty concessions to make their dream an affordable reality.
As part of the 2021-22 Federal Budget, the Australian Government announced an extension of the program until 30 June 2022 with a roll out of an additional 10,000 spots. This means if you are single with a taxable income of up to $125,000 per annum or a couple with a combined taxable income of up to $200,00 with no other real estate interest and a saved deposit of 5% of the purchase price of up to $600,000, you may be able exit the rental market and purchase a house of your own, for less.
With no waitlist for places under the Scheme and a booming real estate market, there is no doubt demand for the additional 10,000 spots will be high. Applicants are unable to apply directly to the National Housing Finance and Investment Corporation (NHFIC) and must go through a participating lender or Mortgage Broker.
If you want to learn more or have a discussion to see how we can help you become an eligible recipient of the Scheme, get in touch with us below.