07 Oct Additional 10,000 First Home Loan Deposit Scheme Places for 2020-21
The Australian Government has announced an additional 10,000 First Home Loan Deposit Scheme places will be provided for the 2020-21 financial year, to support the purchase of a new home or a newly built home.
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.
There are currently 27 participating lenders across Australia offering places under the First Home Loan Deposit Scheme.
All applications for the First Home Loan Deposit Scheme need to be made directly with one of the Scheme’s participating lenders. NHFIC doesn’t accept applications directly from first home buyers.
Before making a reservation, you should carefully consider whether to apply as a single or as part of a couple. This is because once a Scheme place has been reserved for you (as a single or as a couple), it can only be changed by withdrawing and starting a new application. Your ability to secure a Scheme place when doing so will depend on whether a place is available at that time.
For your application you (and your partner if applicable) will need a Notice of Assessment from the Australian Taxation Office to demonstrate your taxable income for the previous financial year. For applications made during the 2020-21 financial year, a 2019-20 Notice of Assessment is required.