First home eligibility scheme

If you are a first home buyer, and don’t have enough deposit saved, you may be eligible under the First Home Loan Deposit Scheme (FHLDS) to get some assistance from the federal government.

Usually, home buyers with less than a 20% deposit need to pay lenders mortgage insurance (LMI) . The scheme lets you buy a property with a 5% deposit and not have to pay lenders mortgage insurance. There are only 10,000 places available in 2020-21, you also need to reserve your right to apply for the scheme. The amount of LMI premiums you have to pay varies, depending on financial institution and the amount you choose to borrow. For example if you have $35,000/5% deposit for a property valued at $699,999 then the cost of your LMI could be as much as $27,031.*

First Home Loan Deposit Scheme Eligibility Checklist

Are you?

  • One, 18 years or older?  
  • Two, an Australian citizen?  
  • Three, you have never owned a home before?

If you have said yes to all three questions, then you may be eligible for the FHLDS;

Income Less than $125,000 previous year tax return
Property priceLand and home combined is less than $700,000
You must have at least 5% deposit in savingAnd no more than 20% deposit in savings
Principal place of residenceOwner-occupiers
Natural person not a company or trust

*This is general advice only. For further information and eligibility requirements, please click here

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