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 buy or build your  first home sooner.

Usually, first home buyers with less than a 20 per cent deposit need to pay Lenders Mortgage Insurance (LMI). Under FHLDS, eligible first home buyers can purchase their first home with a deposit of as little as 5 per cent, without paying LMI.

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 10,000 FHLDS places available from July 2021 for the 2021-22 financial year.

Information about the Schemes, price caps, eligibility requirements, and how to apply can be found on the following websites:

First Home Loan Deposit Scheme https://www.nhfic.gov.au/what-we-do/first-home-loan-deposit-scheme/

If you are eligible for FHLDS, please contact SJ Mortgage Solutions, and we can help you to secure a place in this scheme and to purchase your first dream home.