$10,000 up for Grabs – First Home Loan Deposit Scheme

Saving for a deposit is a challenge! Fortunately, help is at hand for those wanting to buy their first home, with the introduction of the Australian Government’s First Home Loan Deposit Scheme (FHLDS).

What is the FHLDS?

The FHLDS is designed to support first home buyers in being able to afford to purchase a home.  Eligible buyers are able to secure a home with a deposit of as little as 5%, helping them get a foot in the door of the property market.

The scheme also means that these first home buyers will not need to pay for Lenders Mortgage Insurance (LMI). Generally the lender will require you to pay for LMI if your home loan deposit is less than 20% of the total value of your property.

First home buyers must meet certain requirements to be eligible for the FHLDS, such as;

  • The home must be for owner occupation
  • A 5% genuine savings contribution
  • An income test; single applicants can’t be earning more than $125,000 a year, and for couples the combined maximum income is $200,000, from the previous financial year.
  • The value of the property being purchased or constructed cannot exceed certain location based limits—in Sydney, Newcastle, Lake Macquarie and Illawarra it is $700,000, but capped at $450,000 for the rest of the state.

There is a limit to how many FHLDS places are available each financial year, with 10,000 guaranteed loans being offered to eligible people per  financial year.  The latest round opened on 1 July 2020.

Finance under the FHLDS is only available through participating scheme lenders.

As well as applying for this scheme, eligible first home buyers can also utilise first homeowner grants and stamp duty concessions applicable to the state/territory they live in.

The FHLDS can also be used in conjunction with the Home Builder Grant (subject to eligibility).


Stuart Fitzpatrick and Excel Financial Advisors Pty Ltd are authorised representatives of Interprac Financial Planning Pty Ltd AFSL 246638 registered office at Level 8, 525 Finders Street, Melbourne VIC 3000. This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Investment Performance: Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.