First Home Loan Deposit Scheme
FACT SHEET 2021-2022
Who is eligible for the Scheme?
• Australian citizens who are at least 18 years of age.
Permanent residents are not eligible.
• Single applicants with a taxable income of up to
$125,000 per annum for the previous financial year
and couples with a taxable income of up to $200,000
per annum for the previous financial year. For all
Scheme applications made from 1 July 2021 to 30 June
2022, the relevant financial year assessed will be
2020-21.
• Couples are only eligible for the Scheme if they are
married or in a de-facto relationship with each other.
Other persons buying together, including siblings,
parent/child or friends, are not eligible for the
Scheme.
• The Scheme assists single (individual) applicants and
couples (together) who have at least 5 per cent of the
value of an eligible property saved as a deposit. If 20
per cent or more is saved, then the home loan will not
be covered by the Scheme.
• Loans under the Scheme require scheduled
repayments of the principal and interest of the loan
for the full period of the agreement (with limited
exceptions for interest-only loans, which mainly relate
to construction lending).
• Applicants must intend to be owner-occupiers of the
purchased property. Investment properties are not
supported by the Scheme.
• Applicants must be first home buyers who have not
previously owned, or had an interest in, a property in
Australia, either separately or jointly with someone
else (this includes residential strata and company title
properties).
• an existing house, townhouse or apartment
• a house and land package
• land and a separate contract to build a home
• an off-the-plan apartment or townhouse.
Specific dates and requirements apply for the different
property types.
First Home Loan Deposit Scheme fact sheet - June 2021
What is the 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. The Scheme is
administered by the National Housing Finance and
Investment Corporation (NHFIC).
Usually first home buyers with less than a 20 per cent
deposit need to pay lenders mortgage insurance. Under
the Scheme, eligible first home buyers can purchase a
modest home with a deposit of as little as 5 per cent
(lenders criteria apply). This is because NHFIC guarantees
to a participating lender up to 15 percent of the value of
the property purchased that is financed by an eligible first
home buyer’s home loan.
How does the Scheme work?
Eligible first home buyers are able to apply for an eligible
loan to purchase an eligible property through a
participating lender. The Scheme supports up to 10,000
guaranteed loans per financial year. Eligible borrowers can
use the guarantee in conjunction with other government
programs like the First Home Super Saver Scheme,
HomeBuilder grant or state and territory first home owner
grants and stamp duty concessions. The guarantee is not a
cash payment or a deposit for your home loan.
What type of property can be bought?
For a property to be eligible it must be a 'residential
property' - this term has a particular meaning under the
Scheme, and participating lenders can assist if there is
any doubt. Eligible residential properties include:
Find out more about the eligibility criteria at:
www.nhfic.gov.au/what-we-do/fhlds/eligibility