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FHLDS reissuances must be reserved in FY21

Borrowers wishing to apply for a reissued First Home Loan Deposit Scheme place from 2019-20 must apply before 30 June, the NHFIC has revealed.

Earlier this month, the federal government revealed that it would be reissuing approximately 1,800 unused guarantees from the first tranche of the First Home Loan Deposit Scheme (FHLDS).

The National Housing Finance and Investment Corporation (NHFIC), which administers the scheme, has now confirmed that these places will be rolled over into this financial year (2020-21).

As such, eligible first home buyers will need to apply for one of these reissued FHLDS places through a participating lender before 30 June 2021. Some lenders, such as National Australia Bank (NAB), have already opened waitlists for these reissued places.

The NHFIC also confirmed that these scheme places are different from the FHLDS (New Homes) in that they can be used for both new and existing homes (opposed to just new homes).


As with the current tranche of the FHLDS scheme, eligible residential properties include:

  • an existing house, townhouse or apartment
  • a house and land package
  • land and a separate contract to build a home
  • an off-the-plan apartment or townhouse.

Standard income and prior property ownership tests, and minimum age, citizenship, owner-occupier and deposit requirements will still apply.

For example, applicants must be Australian citizens who are at least 18 years of age and have had a taxable income of less than $125,000 in the previous finance year (for single applicants) or $200,000 for couples. 

What the FHLDS covers

Originally having run from 1 February to 1 July 2020, the first tranche saw 10,000 places made available to help first home buyers purchase or build a new or existing home with a deposit of as little as 5 per cent. The government guaranteed up to 15 per cent of the value of the property to help borrowers secure a loan without having to pay lender’s mortgage insurance, in a bid to help more borrowers enter the property market faster.


The first tranche of the FHLDS proved very popular, with initial places in the scheme reserved within four months of launching.

The second tranche of the FHLDS opened on 1 July 2020, with the government later announcing that it would be making available an additional 10,000 places to support the purchase of a new home or a newly built home – FHLDS (New Homes).

On 1 July 2021, another 10,000 FHLDS places will be made available for the 2021-22 financial year.

[Related: More FHLDS options amid falling unit prices]

FHLDS reissuances must be reserved in FY21
FHLDS reissuances must be reserved in FY21

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Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

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