The First Home Loan Deposit Scheme (FHLDS) is a federal programme that assists first-time homebuyers in purchasing or building a new home with a reduced deposit and without having to pay Lenders Mortgage Insurance (LMI). The FHLDS New Home Guarantee is another name for the Scheme.
Traditionally, a deposit of 20% of the property value will be required to avoid paying LMI. For the FHLDS Scheme, you just need a 5% deposit plus the purchasing cost. This Scheme has the power to save first-time homebuyers with modest deposits – less than 20% – and tens of thousands of dollars in LMI payments.
First-time homeowners may use this Scheme in conjunction with other state and federal incentives, such as the HomeBuilder programme and get stamp duty concessions/exemptions on their purchase.
Each state has its own specific policies on the government grants and schemes for first home buyers.
Our team at First Choice Mortgage Brokers will assist you with the application to see if you are eligible for your state or territories requirements. Usually, the first homeowners grant application is submitted whilst the loan is proceeding so that the funds are available for settlement of your home loan.
In some cases, the grant can be submitted post-settlement and the funds deposited into your bank account. We will assist you with the application and submit the forms on your behalf; this is part of our ongoing commitment to you.
Remember, there are only a limited number of Scheme places available – 10,000 each year – so it is important to get in as quickly as possible and be mindful. Please call First Choice Mortgage Brokers to discuss your first home buyers grant opportunities and for any assistance in accessing the First Home Buyers Grant application process.