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More first home buyers to benefit from 5% deposits

  • October 06 2020
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Borrow

More first home buyers to benefit from 5% deposits

By Grace Ormsby
October 06 2020

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.

first home buyers

More first home buyers to benefit from 5% deposits

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  • October 06 2020
  • Share

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.

first home buyers

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.

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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.

More first home buyers to benefit from 5% deposits
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About the author

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Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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