The First Home Loan Deposit Scheme is back

The First Home Loan Deposit Scheme is back. If you’re a first home buyer who missed out on the first two rounds, then here’s how to make it a case of third time’s a charm!

The federal government announcing a fresh extension to the First Home Loan Deposit scheme (FHLDS). First Home Buyer are encouraging to reserve their spot to tap on the benefit.

Why’s this scheme so popular?

The FHLDS allows eligible first home buyers with only a 5% deposit to purchase a property without paying for lenders mortgage insurance (LMI) – which can save you up to $10,000.

When the scheme was launched in January, and then again in July, the 10,000 available spots filled up within a few months both times.

That means if you’re a first home buyer who’s interested in participating in round three then you’ll want to get the ball rolling on your application sooner rather than later to beat the crowds.

What’s New?

Now, the scheme comes with a small catch this time around: it’s only available for first home buyers who PURCHASE NEW BUILD ONLY.

But the good news is the scheme is available alongside other state and federal government first home buyer schemes and stamp duty concessions.  That now includes the recently launched $25,000 HomeBuilder grant  + First homeowner grants ($15,000 to $20,000), that’s basically the deposit for your first home right there.

Also, under the latest extension, first home buyers can now purchase more expensive properties, reflecting the fact that new builds are generally more expensive.

Indeed, the caps for properties eligible under the latest iteration of the scheme have been lifted across the country. New caps are below.

Sydney: $950,000 (up from $700,000)
Melbourne: $850,000 (up from $600,000)
Brisbane: $650,000 (up from $475,000)
Perth: $550,000 (up from $400,000)
Adelaide: $550,000 (up from $400,000)
Hobart: $550,000 (up from $400,000)
Canberra: $600,000 (up from $500,000)
Darwin: $550,000 (up from $375,000).

Areas outside capital cities and major regional centres in each state have different price caps, so be sure to check out the full list.

There are other important eligibility details worth checking out too, such as income tests, prior property ownership tests and an owner-occupier requirement.

Time’s ticking!

It’s important to note that round three of the FHLDS began in Nov – so the race for new openings has already begun.

And while 10,000 spots might sound like a lot, they’ve filled up very quickly in the past.

So if you’re thinking about purchasing your first home soon, click here to fill up your information and we’ll help you get the ball rolling on applying with one of the scheme’s participating lenders.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.