The Treasury has expanded the property price caps for homes purchased under the First Home Loan Deposit Scheme and Family Home Guarantee.
The federal government has confirmed new property price caps for the First Home Loan Deposit Scheme (FHLDS) and the Family Home Guarantee, which apply from 1 July 2021.
A total of 30,000 places will be made available under the First Home Loan Deposit Scheme range of schemes in the new financial year.
As of 1 July, 10,000 additional places will be available for the 2021-22 financial year under each of the FHLDS, the New Home Guarantee and the Family Home Guarantee initiatives.
What is the First Home Loan Deposit Scheme?
What is the First Home Loan Deposit Scheme?
The First Home Loan Deposit Scheme (FHLDS) is an Australian Government initiative to help you buy or build your first home sooner. We’re proud to continue supporting this initiative.
If you’re eligible you’ll get a limited guarantee from the Australian Government to buy or build your first home with a low deposit of 5%, without paying Lenders Mortgage Insurance (LMI).
There are 10,000 FHLDS places available from July 2021 for the 2021-22 financial year.
An additional 10,000 FHLDS places for new homes are available from 1 July 2021 to 30 June 2022 for eligible first home buyers building or buying new homes.
How to apply
- Check your eligibility: Use the National Housing Finance and Investment Corporation (NHFIC) website, opens in new window and the section below to check your eligibility.
- Get in touch: Enquire online or with your broker and complete your home loan application.
- Submit your application: Get conditional approval from your broker. They will then collect the documents required for eligibility and apply to reserve your place in the Scheme.
- Buy your first home: You will have 90 days to purchase your first home after you are approved in the Scheme, then all you need to do is settle and move in.
Eligibility criteria
To apply to the Scheme, you’ll be subject to the following eligibility criteria. You need to be able to provide documentation of your eligibility to secure your position.
Eligibility criteria includes but not limited to:
* All applicants must be First Home Buyers and must not have owned or had an interest in residential property (whether as an investment or owner occupied).
* Individual applicants must have earned less than $125,000 or $200,000 for couples in the last financial year (as evidenced on your ATO Notice of Assessment).
* Couples must be married or in a de facto relationship. Other persons buying together, including friends, siblings or a parent/child are not eligible.
* All applicants must be at least 18 years of age and have a valid Medicare card (or Defence ID).
* All applicants must be Australian citizens with either a valid Australian passport or proof of Australian citizenship. Permanent residents are not eligible.
* Applicants must have a deposit of between 5% and 20% of the property’s value.
* Your purchased property must be an acceptable property type and within the property price threshold for the suburb and postcode. You can check the property price cap for your area on NHFIC’s website, opens in new window.
New price caps
Both the FHLDS and Family Home Guarantee will operate under new property price caps.
Regional centres includes: Newcastle and Lake Macquarie; Illawarra (Wollongong); Geelong; Gold Coast and Sunshine Coast.
New Home Guarantee Construction Extension
The FHLDS (New Homes) scheme (also known as the New Homes Guarantee) which was launched last year, will be expanded for a second year, providing an additional 10,000 places in 2021-22.
It will provide an additional 10,000 places for first home buyers seeking to build a new home or purchase a newly built dwelling with a deposit of 5 per cent and a construction commencement time frame of 12 months.
The New Home Guarantee will now have a construction commencement time frame of 12 months.
Speaking ahead of the release of the additional 30,000 places under the First Home Loan Deposit Scheme, the New Home Guarantee program, and the Family Home Guarantee from 1 July 2021, Minister Sukkar commented: “The First Home Loan Deposit Scheme has been a landmark success of the Morrison government since its commencement in 2020. Thirty thousand first home buyers have been supported into home ownership through First Home Loan Deposit Scheme and New Home Guarantee already.
One-stop finance
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We can be a one-stop-shop for your financing needs. Contact us to find out more about how we can help you with commercial and asset finance.
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The information on this website is general information only and is not intended to be a recommendation. We strongly recommend you seek advice from your financial adviser as to whether this information is appropriate to your needs, financial situation and investment objectives. Article courtesy of ANZ Bank.
