What is the First Home Loan Deposit Scheme?
First Home Loan Deposit Scheme was first announced by the Australian Government to aid First Home Buyers to purchase their first home. Typically a First Home Buyer who wants to purchase a property with less than 20% deposit needs to secure a Lender’s Mortgage Insurance.
LMI usually costs up to $10,000, but under First Home Loan Deposit Scheme, eligible First Home Buyers can purchase their home with a deposit for as little as 5% under a given criteria.
The Australian Government will be responsible for guaranteeing to the participating bank the remaining amount of the required deposit, which will be financed by the First Home Buyer’s home loan.
How do I apply for the First Home Loan Deposit Scheme?
The application for the First Home Loan Deposit Scheme is not applied directly to the Australian government, but should be directly put forward with one of the 27 participating lenders.
There are also different eligibility criteria if you are intending to apply as a couple, as opposed to applying as a ‘single’. You may change your application by withdrawing the original application lodged and submit a new one, but this will also means giving up your place during the application process.
If you're a first home buyer and would like to consider your options - contact us now.
The following are the criteria tests that will make an impact on your eligibility for the First Home Loan Deposit Scheme.
It is important that you first consider your own eligibility by checking the below.
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