First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme is a Australian Government initiative to support eligible first home buyers purchase a home sooner. It does this by providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5 per cent (lender's criteria apply).


Most banks and lenders require a minimum deposit of 20% of the property’s value for the borrower to be exempt from lenders mortgage insurance (LMI). The scheme allows first home buyers who can’t reach this threshold to take out a loan if they have saved at least 5% of the value of the property they are buying. The government will underwrite the loan so that borrowers do not have to pay LMI.

Essential Points
  • Start Date: 1 January, 2020
  • Eligibility: Singles earning less than $125,000, couples less than $200,000
  • Minimum Deposit Required: 5%
  • Property Price Cap: Dependent on region (see below)
  • Administering Body: National Housing Finance and Investment Corporation (NHFIC)
Scheme places

Since starting on 1 January, the banks have registered 3,000 potential first home buyers under the First Home Loan Deposit Scheme.

The remaining 7,000 Scheme places for the current financial year will be available from 1 February 2020 when potential applicants will have a panel of 27 lenders to choose from.

NHFIC is releasing 10,000 First Home Loan Deposit Scheme guarantees this financial year. Another 10,000 places will be available from July 2020.

The staged release of Scheme places provides first home buyers with the opportunity to gather the necessary financial information to support their application and enables a broader choice between the major banks and smaller lenders. Twenty-five smaller lenders join the Scheme’s lending panel on 1 February.

Am I eligible for the new First Home Owner Scheme? 

The scheme is open to individuals who are earning up to $125,000 per year, as well as couples with combined earnings of up to $200,000. To be eligible, first home buyers must show that they have saved at least 5% of the value of the property they are purchasing.

Not all properties will be eligible to be purchased under the government’s home deposit scheme. The scheme will only underwrite loans for ‘entry properties’, excluding high-value properties. There is no fixed maximum value for properties eligible under the scheme, as price caps will be determined relative to the property’s local market. You will need to check what the property price cap is in your area. You can find that here:

How to apply

Lodge your application through participating lenders and their authorised representatives(mortgage broker)

NHFIC will not accept applications directly and is not able to provide personal financial advice. First home buyers (and those advising a first home buyer) are encouraged to consult with a participating lender and seek their own independent financial and legal advice on how to structure their loan arrangements in a way that suits their own personal circumstances.

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