top of page

First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase their first home sooner.

Usually a person who borrows more than 80% of the value of the property will be required to pay lenders mortgage insurance.    Under the Scheme, eligible first home buyers can purchase a home with a 5% deposit.   The First Home Loan Deposit Scheme guarantees to a participating lender up to 15% of the value of the property.   Whilst the purchasers to do receive any payment they can be saving thousands of dollars by not being required to pay the lenders mortgage.

This scheme may be applied for through any of the 27 participating lenders. While all places have been reserved for 2019-20, places may become available again if applicants do not proceed to purchasing a property. 

Another 10,000 Scheme places will be released for the next financial year from 1 July 2020.

For the current financial year, 5,000 Scheme places were made available to the major banks – CBA and NAB. The remaining 5,000 Scheme places were offered through 25 non-major lenders.

All applications for the First Home Loan Deposit Scheme need to be made directly with one of the Scheme’s participating lenders.

For your application you (and your partner if applicable) will need your Notice of Assessment for your taxable income for the previous financial year.

The Scheme includes an income test for:

  • singles – your taxable income for the previous financial year must not be more than $125,000.

  • couples – your combined taxable income for the previous financial year must not be more than $200,000.

The income test is assessed by your lender.

The Scheme is only open to current Australian citizens and ALL purchasers must be Australian citizens.   Permanent residents are not eligible.

Investment properties are not supported by the Scheme.

To meet the owner-occupier requirement, you will need to:

  • move into the property within six months from the date of settlement or, if later, the date an occupancy certificate is issued, and

  • continue to live in that property for so long as your home loan has a guarantee under the Scheme.

A registered first ranking mortgage must be secured by the lender over the eligible property.

The property must have no other registered owners at the time of settlement, other than the eligible borrower/s

100% of the loan drawdown proceeds must be used for the purchase (or towards the purchase and improvement) or construction of the eligible property

Your loan amount commitment must be not less than 80% and not more than 95% of the relevant value of the property and have a loan term of 30 years or less.


The loan must require regular principal and interest loan repayments.

Exception to this will be granted during the construction of a new dwelling, whereby lenders will be able to allow borrowers to make interest only repayments for the period in which the dwelling is being constructed until it can be occupied by the borrower.

The loan must allow for no changes to loan terms, such as increased limit.

If you are intending to construct a dwelling on vacant land, your home loan must finance both the purchase of the land and construction of a dwelling.

If you are intending to purchase land where a dwelling is not affixed and you are not also using your home loan to construct a dwelling, your home loan is not eligible for the Scheme.

The following cap has been placed on the purchase price of properties to be eligible for the scheme:-

NSW Capital City                                                                                                               $700,000.00

NSW Regional Centres – Newcastle Lake Macqurie and Illawarra               $700,000.00

NSW Other                                                                                                                         $450,000.00

Your lender will be able to advise you if you are eligible for this Scheme

bottom of page