What is the First Home Loan Deposit Scheme?
The First Home Loan Deposit Scheme is an initiative that is provided by the Australian Government to help support First Home Buyers to purchase their first home. If a First Home Buyer wants to purchase a property with less than 20% deposit, they would ordinarily have to incur the Lenders Mortgage Insurance, which can cost up to $10,000. Under the First Home Loan Deposit Scheme, First Home Buyers who are eligible, are able to purchase their home (under certain criteria) with a deposit for as little as 5%.
The Australian Government will guarantee the participating bank up to 15% of the required deposit, which will be finance by the First Home Buyer's home loan.
How do I apply for the First Home Loan Deposit Scheme?
You will need to put forward an application for the First Home Loan Deposit Scheme directly with the participating lenders. You cannot apply directly to the Australian Government, but one of the 27 participating lenders. You should also consider whether you want to apply as a 'single' or as a 'couple', as there are different eligibility criteria for both. You can only change your application by withdrawing the original application lodged, and submitting a new one, but may forsake your place in the application process.
What's the eligibility criteria?
There are many different criteria points that will impact upon your eligibility for the First Home Loan Deposit Scheme: