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Minimum 5% deposit
Get into your first home sooner
Pay no LMI
Save thousands in Lenders Mortgage Insurance costs
Access to our best products
All members get access to the same great loan benefits
What is the First Home Loan Deposit Scheme?
The First Home Loan Deposit Scheme (FHLDS) is an Australian Government initiative to help eligible first home buyers purchase a home sooner. It does this by providing a guarantee that will allow eligible first home buyers to purchase a home with a deposit of as little as 5% without needing to pay for Lenders Mortgage Insurance (LMI).
From 1 July 2021, there will be an additional 10,000 FHLDS places available for the 2021-22 financial year.
In addition to this, there will be an extra 10,000 places for eligible first home buyers building or buying new homes. These will be available from 1 July 2021 to 30 June 2022 under the New Home Guarantee (NHG).
Are you eligible for the First Home Loan Deposit Scheme?
To apply to the First Home Loan Deposit Scheme, you'll be subject to the following eligibility criteria. You need to provide documentation to prove your eligibility and secure your position.
Eligibility criteria includes:
- You must be purchasing or building your first home buyer.
- You must be an Australian citizen at least 18 years of age. Permanent residents are not eligible.
- You must have earned less than $125,000 as a single person, and less than $200,000 for couples in the last financial year. Couples must be married or de-facto.
- There are also regional property price caps set by state and territory governments. For example, Perth’s maximum property purchase price is $500,000, while the property price threshold in regional WA is $400,000.
Check your eligibility
The government has developed a handy questionnaire to help first home buyers determine whether they meet the Scheme’s eligibility criteria. Simply choose below whether you wish to apply as an individual or a couple.
What property types qualify?
Eligible property types for the First Home Loan Deposit Scheme include:
- newly constructed dwellings
- off-the-plan dwellings
- house and land packages, or
- land and a separate contract to build a new home.
The government has also developed a questionnaire to help first home buyers determine the property price caps for the suburbs where they’re looking to purchase a property. All you need to do is follow the link and enter the postcode for the area you want to buy in to find out the property price cap.
What about the state and federal building grants on offer?
Great news! The building grants currently on offer from state and federal governments are independent to this Scheme, which means if you're eligible for both this Scheme and any of the other grants, you'll benefit from both.
Want to get started?
Get in touch with us
We're here to assist you in the most convenient way possible, whether that's online, over the phone, at your local branch, or visiting you at home or work.
Talk to your broker
Simply mention this Scheme to your broker and they will be able to submit an application on your behalf.
Family Home Guarantee
The Australian Government also announced a new program called the Family Home Guarantee. This provides eligible single parents with dependants the opportunity to build a new home or purchase an existing home with a deposit of 2%. Please note, P&N Bank is not a participating lender in the Family Home Guarantee. Visit the NHFIC website to find out more.
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Additional resources:
Fact sheets and information guides:
Meeting the eligibility criteria does not mean that you will receive either a guarantee or a loan from a Scheme lender.