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 |
*Figures are correct at January 2020.
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.