The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase their first home sooner.
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 with as little as 5 per cent (lenders criteria also 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.
NHFIC released 10,000 Scheme places for the 2019-20 financial year from 1 January 2020. 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.
Another 10,000 Scheme places will be available for next financial year from 1 July 2020.
More information is available at: www.nhfic.gov.au/what-we-do/fhlds/#