Visit our COVID-19 help page for ways we can help you and the latest information.
Skip to main content
Locate us 1300 236 344
Logon
Financial planningFuneral Bonds

Money & Living

At Bendigo Bank we know we have big responsibilities, which is why we’re here to help you with handy tips, interviews and advice on all things money and living.

How to get your first home for less

14 January 2020

Being a first home buyer

Looking at buying your first home as a first home buyer? That’s a big life moment. You’ve probably been saving for a while or perhaps you’re wanting to break free of paying rent. Good job! 

Typically, home buyers need 20% of the property’s value saved up as a deposit for a home loan to avoid mortgage insurance costs. That’s a lot of saving and discipline. Maybe you’ve had to go without your daily coffee or kombucha.

No matter how you’ve reached the decision to enter the property market, from January 1, 2020, being a first home buyer might be easier than ever thanks to the First Home Loan Deposit Scheme.

What is the First Home Loan Deposit Scheme

It’s a federal government initiative aiming to make housing more affordable and accessible.

The scheme will support up to 10,000 loans each financial year and started on 1 January 2020.The government will provide eligible borrowers with a guarantee removing the high costs of mortgage insurance – first home buyers will need as little as 5% deposit, with the government guaranteeing the difference between your deposit and 20% of the value of your home.

The details

Depending on where you’re planning to buy, the scheme has varying thresholds for different parts of the country. This is what they look like:

Region ID

Region

Price Cap ($AUD)

1

NSW - capital city

$700,000

2

NSW - regional centre (Newcastle and Lake Macquarie)

$700,000

3

NSW – regional centre (Illawarra)

$700,000

4

NSW – other

$450,000

5

VIC – capital city

$600,000

6

VIC – regional centre (Geelong)

$600,000

7

VIC – other

$375,000

8

QLD – capital city

$475,000

9

QLD – regional centre (Gold Coast)

$475,000

10

QLD – regional centre (Sunshine Coast)

$475,000

11

QLD – other

$400,000

12

WA – capital city

$400,000

13

WA – other

$300,000

14

SA – capital city

$400,000

15

SA – other

$250,000

16

TAS – capital city

$400,000

17

TAS – other

$300,000

18

ACT

$500,000

19

Northern Territory

$375,000

20

Jervis Bay Territory & Norfolk Island

$450,000

21

Christmas Island & Cocos (Keeling) Island

$300,000

*Source: National Housing and Finance Investment Corporations

The government has grouped together capital cities and large regional centres (with populations above 250,000) because property prices are more expensive than in other regional areas.

So, if you’re thinking of becoming a homeowner in quickly growing areas like the Central Coast, the Gold Coast, Geelong, Newcastle, the Sunshine Coast or Wollongong, the scheme could be perfect a match.

Are you eligible?

Find out if you qualify for the First Home Loan Deposit Scheme.

The FHLDS is just one way to get the keys to your first home. Check out these other options for First Home Buyers.

Disclaimer
Any advice provided in this article is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable product disclosure statement(s) on our website before acquiring any product.

Related Topics

Most Popular

Home 01 May 2019
Home loan 101
Home 25 July 2019
The top 5 questions on home loans
Home 11 June 2019
Thinking of renovating?
Home 11 June 2019
First home buyers

Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL / Australian Credit Licence 237879. Any advice provided on this website is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable Disclosure Documents before acquiring any product described on this website. Please also review our Financial Services Guide (FSG) before accessing information on this website. Information on this page can change without notice to you.

© Copyright 2020 Bendigo and Adelaide Bank