First Home Loan Deposit Scheme (FHLDS)

What is the First Home Loan Deposit Scheme?

The First Home Loan Deposit Scheme (FHLDS) is an Australian Government initiative to support eligible first home buyers to get into their own home. Usually, first home buyers who pay less than a deposit of 20 per cent still have to pay the lenders mortgage insurance (LMI).

Eligible Australians can purchase a home with a deposit of as little as 5 per cent. The First Home Loan Deposit Scheme can be used in conjunction with any of the new Government grants, the First Home Super Saver Scheme, as well as the stamp duty concessions. The guarantee does not involve a cash payment of a deposit that can be used towards your first home loan.

Loans under the First Home Loan Deposit Scheme (FHLDS) require scheduled repayments of the principal and interest of the loan, for the full period of the agreement. In limited cases related to construction lending, there might be exceptions for interest-only loans.

Eligibility criteria for the First Home Loan Deposit Scheme:

  • Applicant must be an Australian citizen. Permanent residents are not eligible.
  • Applicant must be 18 years or older
  • Taxable income must be below these thresholds –
    • $125,000 per annum for individuals
    • $200,000 per annum for couples
  • Couples are only eligible if they are married or in a de facto relationship with each other
  • Applicable to residential properties
    • an existing house, townhouse or apartment
    • a house and land package
    • land and a separate contract to build a home
    • an off-the-plan apartment or townhouse
  • Applicable to owner-occupied properties only. Investment properties are not supported under this scheme
  • Applicants must be first home buyers. This means the applicant must not have previously owned, and not had an interest in a property in Australia
  • The value of the property must not exceed $400,000 in Perth and regional centres. The property value has been capped at $300,000 in the rest of the state

Get in touch with our Mortgage Team

To find out if you are eligible for one or more of the current Government grants, please contact your Pacific Finance Broker via or give us a call on (08) 9321 2120. To make it easier to understand all the Housing Grants currently available, the Pacific Team has consolidated the latest Federal and State Housing Grants into an eBook.

Download our Housing Grants eBook via the link below.