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.
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.