Invest
Has the FHLDS made home ownership easier?
Despite the recent introduction of the First Home Loan Deposit Scheme, prospective home owners still believe it is impossible to get onto the property market, new research has suggested.
Has the FHLDS made home ownership easier?
Despite the recent introduction of the First Home Loan Deposit Scheme, prospective home owners still believe it is impossible to get onto the property market, new research has suggested.
According to survey data from Mortgage Choice, 90 per cent of Millennials believe it is harder than ever to get into the property market.
Speaking about the survey findings, Mortgage Choice CEO Susan Mitchell said “it’s unsurprising that the vast majority of first-time buyers feel it is impossible to get into the property market”.
“With property prices on the rise again, saving for a home loan deposit can seem like an insurmountable goal,” Ms Mitchell said.
The FHLDS was introduced as an initiative by the federal government to address the housing affordability crisis and allows 10,000 eligible first home buyers the opportunity to buy their first home with a deposit of as little as 5 per cent without incurring lenders’ mortgage insurance.
FHLDS reservation places are given on a first come first serve basis, with the first 3,000 places taken in and the remaining 7,000 available from 1 February 2020. A further 10,000 guarantees will be available from 1 July 2020.
“Often hailed as the biggest hurdle to home ownership, saving a 20 per cent home loan deposit could seem like a thing of the past for some first-time buyers.”
“A new measure introduced by the federal government to improve housing affordability grants a group of first-time buyers the opportunity to get on the property ladder sooner, but getting a place in the scheme might be as unlikely as securing a winning lottery ticket,” Ms Mitchell said.
The Mortgage Choice CEO said that while the scheme is a good initiative that can help Australians fulfil their property ownership goals, a few considerations need to be made.
“Of course, first-time buyers who cannot secure a place in the scheme may still be able to get a home loan with a 5 per cent deposit if they pay lender’s mortgage insurance, but they may end up paying more interest over the life of the loan as a consequence,” Ms Mitchell said.
“Furthermore, those who buy a home using the scheme will need to make a commitment to live in the property as they cannot change the terms of the loan,” she concluded.
RELATED ARTICLES
About the author
About the author
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
