A further 10,000 First Home Loan Deposit Scheme places will be released on July 1, 2021. The last spots went quickly so you should ideally try and get prepared to apply before June 30, 2021, if you don’t want to miss out.
The scheme was launched last year to assist First Home Buyers to buy into the property market, but also support the new home construction industry. The scheme was super popular with many first home buyers missing out on a place and joining a waitlist. The competition is already strong and some lenders have opened waitlists for these reissued places effective July 1, 2021.
How much deposit do I need to buy my first home?
Whether you are buying or building a new home or buying an existing home, you could be eligible for the FHLDS with a deposit of as little as 5% of the property value.
Normally a first home buyer would need to pay Lenders Mortgage Insurance (LMI) if they don’t provide a 20% deposit for the property purchase. In this scheme, the government will provide a guarantee on an eligible loan for the 15% deposit shortfall.
Are there any changes to the previous FHLDS?
Unlike the first release of the FHLDS, this time eligible residential properties that qualify for the scheme include:
- An existing house, townhouse, apartment
- A house and land package
- Land and a separate contract to build a home
- An off-the-plan apartment or townhouse.
Am I eligible for the FHLDS?
The FHLDS is open to singles or couples with a minimum age of 18 years. Standard income and prior property ownership tests, citizenship, owner-occupier, and deposit requirements still apply and you can find more about these requirements here – https://www.nhfic.gov.au/what-we-do/fhlds/
How do I reserve my place in the FHLDS?
You’ll need to apply for a loan approval at the same time as applying for a pre-approval, so get in touch with us when you’re ready to apply and we can help get you started. Ideally you should aim to apply between the 15th to the 30th of June to give yourself the best chance of getting a spot.
If you have any questions or concerns, feel free to book in a time to chat with me here: Calendly Link – Joel Wyld