The federal government has recently announced that it will reissue unused guarantees from the 2019-2020 financial year from buyers who were unable to complete the purchase of their first home under the First Home Loan Deposit Scheme (FHLDS).

This opens up 1,800 opportunities for first home buyers to purchase a home under the scheme. Of the 27 participating lenders, so far NAB and Commonwealth Bank have announced that additional places will be available under them.

If you’re in the process of purchasing or building your first home, it’s a good idea to check whether you are eligible for the scheme.

What is the first home loan deposit scheme?

At the start of 2020, the Australian Government launched the First Home Loan Deposit Scheme (FHLDS). This initiative aims to support eligible applicants to purchase their first home sooner.

Under the FHLDS, eligible first home buyers can purchase a home with a deposit of five per cent (or higher) without paying lenders mortgage insurance, which is usually required when purchasing a home with a deposit less than twenty per cent.

This is made possible as the National Housing Finance and Investment Corporation (NHFIC) guarantees up to fifteen per cent of properties purchased under the FHLDS. It thus takes over the risk to the lender if the borrowers default under the loan in place of the loan mortgage insurer.

If you require further assistance in purchasing your home under the FHLDS, contact us at Loanscape today!

Mar 10, 2024

Borrowing Capacity Index – February 2024

Loanscape has today released its Borrowing Capacity Index for Q2/2024. It shows that the borrowing capacities of Australian individuals and families have stabilised after the sharp decline over the past 2 years. Lower income borrowers continue to be disproportionately impacted by interest rate increases: the family income required to qualify for the average size loan in Australia is 35% higher than 2 years ago.

Mar 8, 2024

Market Essentials - March 2024

Combined dwelling values have re-accelerated across the nation in February, with all mainland capitals soaring in value. It probably comes as no surprise that Perth claimed the top spot by gaining a whopping 1.8% for the month

Dec 8, 2023

Borrowing Capacity Index – November 2023

Loanscape has today released its Borrowing Capacity Index for Q1/2024. It shows that the borrowing capacities of Australian individuals and families continue to decline. The more modest decline in the size of average loans being taken confirms that lower income borrowers are being disproportionately impacted by interest rate hikes: the family income required to qualify for the average loan in Australia is now 32% higher than 18 months ago.

Nov 19, 2023

Market Essentials – November 2023

The end of the year is fast approaching, with most capitals experiencing a strong recovery on dwelling values from the downturn that culminated at the start of 2023.

The recovery is mainly due to an influx of immigration and constricted supply, which the Government is trying to remedy with its ambitious goal of building 1.2 million homes by 2029 through HAFF.

Nov 18, 2023

Market Essentials – October 2023

In this months report, the $10bn Housing Australia Future Fund (HAFF) has finally passed the Senate after the Labor Government struck a deal with the Greens to add another $1bn for public and community housing. The HAFF plans to build 30,000 social and affordable homes in the next five years; though, national spokesperson for Everybody’s Home, Maiy Azize says it won’t solve the existing “shortfall of 640,000 homes”.

Market Essentials – September 2023

In this months news, CoreLogic’s Mapping the Market tool shows rent values rose in over 90% of Australian markets over the last 12 months, with Adelaide and Perth’s suburbs topping the list.

In response, the National Cabinet has introduced new measures to counter the rising housing crisis, including a New Home Bonus, a Housing Support Program and a National Planning Reform Blueprint.

It has also agreed to A Better Deal for Renters, which will streamline renters’ rights across the nation with consistent policies for eviction grounds, rental standards and limits on rent increases.

Finance and Property News and Commentary

What is the first home loan deposit scheme?

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