First Home Loan Deposit Scheme / New Home Guarantee
12/7/2021
The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase their first home sooner.
10,000 First Home Loan Deposit Scheme places will be available to eligible first home buyers from 1 July 2021 to 30 June 2022.
Usually, first home buyers with less than a 20% deposit need to pay lenders mortgage insurance.
Under this Scheme, part of an eligible first home buyer’s home loan from a Participating Lender will be guaranteed by the National Housing Finance and Investment Corporation (NHFIC). This is aimed at enabling you to purchase your first home sooner with as little as a 5% deposit.
Any guarantee of your home loan is for up to a maximum amount of 15% of the value of your property (as assessed by your lender). This guarantee is not a cash payment or a deposit for your home loan.
You can view the First Home Loan Deposit Scheme fact sheet to learn more, but some of the key takeaways include:
If your home loan is covered by this Scheme, you can also access other government programs – like the Australian Government’s First Home Super Saver Scheme, Home Builder Grant or Western Australia’s First Home Owner Grant.
Am I eligible for the First Home Loan Deposit Scheme?
There are a very limited number of places which are likely to be filled quickly! The placements are now open, so the best way to get started is to enquire today with The Loan Company’s team of experienced brokers to find out if you fit the eligibility criteria, and we can help you with any other queries you may have regarding these government schemes and initiatives.