First Home Loan

First Home Loan Deposit Scheme Borrow up to 95% with no LMI‎

Since starting on 1 January, the banks have registered 3,000 potential first home buyers under the First Home Loan Deposit Scheme. The remaining 7,000 Scheme places for the current financial year will be available from 1 February 2020 when potential applicants will have a panel of 27 lenders to choose from. NHFIC is releasing 10,000 First Home Loan Deposit Scheme guarantees this financial year. Another 10,000 places will be available from July 2020. The Guarantee is not a cash payment or deposit for your home loan. How does First Home Loan Deposit Scheme work? Eligible first home buyers are able to obtain an eligible loan to purchase an eligible property through a participating lender with up to 15% of the value of the property guaranteed by NHFIC. To find the eligibility criteria please use the following link:  https://www.nhfic.gov.au/media/1701/first-home-loan-deposit-scheme-fact-sheet-1-july-2021.pdf

  • Australian citizens who are least 18 years old.
  • Singles with a taxable income of up to $125,000 per year or couples with taxable income of up to $200,000 per year (incomes would be assessed for the financial year preceding the one in which the loan is entered into).
  • Couples are only eligible for the scheme if they are married or in a de-facto relationship. So other people such as siblings, a parent and child or two friends buying together would not be eligible for the Scheme.
  • Applicants must have a deposit of at least 5% – but no more than 20% – of the property’s value.
  • Loans under the Scheme normally require scheduled repayments of the principal (as well as the interest) of the loan for the full period of the home loan contract. However, if the loan relates both to the purchase of vacant land to the construction of a house on the land, the loan may be eligible even if the terms of the loan agreement permit interest-only repayments for a specified period.
  • Loans are only eligible for the scheme if they’re for the purchase of a ‘residential property’. The NHFIC recommends asking your lender if you’re in doubt as to whether the property you’re buying is considered residential.
  • Applicants must intend to move into and live in the property as their principal place of residence, typically within six months of settlement (so they must be owner-occupiers, not investors). They must also continue to live in the property for as long as their loan “has a guarantee under the Scheme”.
  • Applicants must be first home buyers who have not previously owned or had an interest in a residential property, either on their own or jointly with someone else (this includes body corporate and company-owned properties, regardless of whether it was an investment or owner-occupied property and whether it was ever lived in).

If you are seeking for help in loan matters then Loans and Mortgages can assist you with your personal finances including your home loan, car loan and insurances. We pride ourselves on being the most trusted and experienced mortgage servicing company in Australia offering services in New South Wales, Victoria, Queensland, Western Australia, South Australia, and Tasmania.

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