Powered by MOMENTUM MEDIA
subscribe to our newsletter

Second tranche of FHLDS launches

A further 10,000 places have officially been made available under the government’s First Home Loan Deposit Scheme.

The First Home Loan Deposit Scheme (FHLDS) is an Australian government initiative that aims to help eligible first home buyers buy a home sooner by reducing the size of deposit needed to secure a mortgage.

The FHLDS, administered by the National Housing Finance and Investment Corporation (NHFIC), aims to provide up to 10,000 first home buyers per financial year with access to housing finance with a deposit of at least 5 per cent.

The government has agreed to guarantee the difference between the borrower’s deposit and the standard 20 per cent deposit required to take out a home loan without paying lender’s mortgage insurance.

The scheme first launched in January of this year, with 10,000 places being made available for the six-month period Jan-June 2020.

Advertisement
Advertisement

A further 10,000 places have now been made available for the 2020-21 financial year.

Speaking of the launch of the second tranche, NHFIC CEO Nathan Dal Bon said: “To date we’ve seen widespread appeal of the scheme across all states and territories, including regional and metro areas.

“Notwithstanding the current challenges posed by COVID-19, we anticipate that there will be continued demand for these new 10,000 places.” 

First home buyers can check their eligibility and apply for one of the 10,000 scheme places for the 2020-21 financial year through the panel of 27 participating lenders

Applications from 1 July will require a 2019-20 Notice of Assessment from the Australian Taxation Office to demonstrate that their taxable income is no more than $125,000 for individuals and $200,000 for couples. 

PROMOTED CONTENT


[Related: Major bank cuts rates, gears up for second round of FHLDS]

Second tranche of FHLDS launches
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Reporter

If you have any news, ideas or enquiries for Mortgage Business - please contact This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Latest News

Banks are too reliant on regulatory oversight to do what is right for borrowers, the big four boss has said. ...

There has been a surge in Melbourne residents migrating to regional Victoria, and an uplift in new housing approvals in Geelong, new researc...

ASIC reported a significant increase in the number of ACL and AFSL applications it received in the past year due to licensing reforms, inclu...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.