THE FIRST HOME LOAN DEPOSIT SCHEME FOR AUSTRALIAN
For many Australians, entering the property market and purchasing their first home is often challenging due to the large deposit required.
The Australian Government’s First Home Loan Deposit Scheme (FHLDS) is designed to assist eligible first home buyers purchase a home sooner by allowing them to obtain a loan with just a 5% deposit, rather than the standard 20% deposit. The Government then guarantees the remaining 15%, which effectively enables buyers to avoid lenders mortgage insurance. The scheme commenced on January 1 2020 and already 3000 first-home buyers have reserved a place on the scheme. There are only 10,000 loans available each financial year. The FHLDS can be used to purchase a new or existing property (and in some cases land), and can be used in conjunction with other government programs.
The Australian Government’s First Home Loan Deposit Scheme (FHLDS) is designed to assist eligible first home buyers purchase a home sooner by allowing them to obtain a loan with just a 5% deposit, rather than the standard 20% deposit. The Government then guarantees the remaining 15%, which effectively enables buyers to avoid lenders mortgage insurance. The scheme commenced on January 1 2020 and already 3000 first-home buyers have reserved a place on the scheme. There are only 10,000 loans available each financial year. The FHLDS can be used to purchase a new or existing property (and in some cases land), and can be used in conjunction with other government programs.
