As property prices keep hitting new records, it becomes harder for people to buy their first home. Fortunately, the government has announced numerous grants and schemes assisting first home buyers to save for their first property. The First Home Loan Deposit Scheme is one of these.
What is the First Home Loan Deposit Scheme?
The First Home Loan Deposit Scheme is designed to support Australians to get into their first home. This scheme allows people to purchase their home with only a 5% deposit and the lender mortgage insurance waived. This will help purchasers have less pressure in preparing a deposit for their purchase. Additionally, this scheme does not affect the existing First Home Owners’ Grant or stamp duty exemptions/concessions – more than one can apply.
We compare and summarise the key points of the current common grants as follows:
|First Home Loan Deposit Scheme||Homebuyer Fund||First Home Owners Grant|
We’ve written previously about the First Home Owners Grant and the Homebuyer Fund which shows more information of the other two programs. Click here for more details about the key criteria of applying the First Home Loan Deposit Scheme.
How to apply for the scheme?
From 1 July 2021, 10,000 places were released for application and further 4,651 available in 2022 to allow more eligible purchasers to apply for the scheme. Only participating lenders offer places in the scheme, find out which lenders are involved in the scheme here.
W Legal Group can help!
There are many things to consider when you decided to purchase your first home. If you would like to have a chat with us and see whether you are eligible to the scheme or not, do not hesitate to give us a call to make an appointment, we are more than happy to discuss further with you.