Borrow
More first home buyers to benefit from 5% deposits
The federal government has announced the extension of the First Home Loan Deposit Scheme, opening up 10,000 new places to aid in post-COVID-19 economic recovery.
More first home buyers to benefit from 5% deposits
The federal government has announced the extension of the First Home Loan Deposit Scheme, opening up 10,000 new places to aid in post-COVID-19 economic recovery.
A statement from Treasurer Josh Frydenberg outlined that the additional places would be available from today, 6 October 2020, to support the purchase of a new home or a newly built home.
The First Home Loan Deposit Scheme (FHLDS) allows eligible applicants to purchase a home (within certain price restrictions based on location) with a deposit of just 5 per cent, without paying lender’s mortgage insurance.
Originally, 10,000 places were made available in the FHLDS for the 2020-21 financial year, with all 5,000 non-major lender quota places filled within the first three months of the financial year.
The opening up of new places in the scheme does have a tighter set of requirements than the initial scheme, restricted to the building of a new home or purchase of a newly built home, which was not a requirement of the original scheme.
Mr Frydenberg said the additional guarantees will be available until 30 June 2021 “and will drive more construction and support jobs as part of our Economic Recovery Plan”.
The FHLDS can be used in conjunction with the First Home Super Saver Scheme and HomeBuilder grants, as well as relevant state and territory grants and concessions.
RELATED ARTICLES
About the author
About the author
Loans
The new shadow lender: How the ‘Bank of Mum and Dad’ is redrawing Australia’s first-home buyer market
Parental capital has become a decisive force in Australia’s housing market, accelerating deposits, lifting bidding power and creating a two‑speed pipeline of first‑home buyers. This isn’t a feel‑good ...Read more
Loans
The effortless edge: How Australian brokers turn retention into a compounding growth engine with AI and specialisation
Australia’s broking market is crowded, digital-first and unforgiving on acquisition costs. The growth story now is retention—engineered through low-effort client experiences, AI-enabled servicing and ...Read more
Loans
State Street: RBA holds rates at 3.6% as hawkish tone emerges
State Street has said the Reserve Bank of Australia’s (RBA) decision to hold the cash rate at 3.6 per cent reflects a more hawkish policy bias, signalling that the central bank is likely to keep rates ...Read more
Loans
The effortless edge: How brokers turn low-friction service into high-retention value
Client retention in broking is no longer about squeezing a better rate at renewal. It’s about building an ‘effortless’ experience that anticipates needs, removes friction, and compounds loyalty across ...Read more
Loans
Mortgage broking 2030: from rate-hunting to AI-orchestrated advice
A new industry white paper promises a map for mortgage broking’s next decade. The real story: distribution power is shifting from rate comparison to data-led advice, and firms that industrialise AI ...Read more
Loans
Mortgage stress is easing — but the relief is uneven and strategic
The share of Australian borrowers classified as ‘at risk’ has fallen to its lowest level since early 2023, according to Roy Morgan. Yet the absolute number of households under pressure has risen by ...Read more
Loans
Mortgage stress is easing — but the credit cycle’s next winners will be data‑led
New Roy Morgan data shows the share of borrowers at risk has fallen to the lowest point since early 2023. That’s a welcome inflection after two years of rate rises—but the absolute number of at‑risk ...Read more
Loans
Beyond the mortgage: SME lending is where growth, margin and loyalty are shifting
SME credit is moving from branch desks to APIs, from collateral to cashflow, and from monoline lenders to embedded platforms. For banks, fintechs and brokers, this is not a side-bet—it’s where ...Read more
Loans
The new shadow lender: How the ‘Bank of Mum and Dad’ is redrawing Australia’s first-home buyer market
Parental capital has become a decisive force in Australia’s housing market, accelerating deposits, lifting bidding power and creating a two‑speed pipeline of first‑home buyers. This isn’t a feel‑good ...Read more
Loans
The effortless edge: How Australian brokers turn retention into a compounding growth engine with AI and specialisation
Australia’s broking market is crowded, digital-first and unforgiving on acquisition costs. The growth story now is retention—engineered through low-effort client experiences, AI-enabled servicing and ...Read more
Loans
State Street: RBA holds rates at 3.6% as hawkish tone emerges
State Street has said the Reserve Bank of Australia’s (RBA) decision to hold the cash rate at 3.6 per cent reflects a more hawkish policy bias, signalling that the central bank is likely to keep rates ...Read more
Loans
The effortless edge: How brokers turn low-friction service into high-retention value
Client retention in broking is no longer about squeezing a better rate at renewal. It’s about building an ‘effortless’ experience that anticipates needs, removes friction, and compounds loyalty across ...Read more
Loans
Mortgage broking 2030: from rate-hunting to AI-orchestrated advice
A new industry white paper promises a map for mortgage broking’s next decade. The real story: distribution power is shifting from rate comparison to data-led advice, and firms that industrialise AI ...Read more
Loans
Mortgage stress is easing — but the relief is uneven and strategic
The share of Australian borrowers classified as ‘at risk’ has fallen to its lowest level since early 2023, according to Roy Morgan. Yet the absolute number of households under pressure has risen by ...Read more
Loans
Mortgage stress is easing — but the credit cycle’s next winners will be data‑led
New Roy Morgan data shows the share of borrowers at risk has fallen to the lowest point since early 2023. That’s a welcome inflection after two years of rate rises—but the absolute number of at‑risk ...Read more
Loans
Beyond the mortgage: SME lending is where growth, margin and loyalty are shifting
SME credit is moving from branch desks to APIs, from collateral to cashflow, and from monoline lenders to embedded platforms. For banks, fintechs and brokers, this is not a side-bet—it’s where ...Read more
