Open the door to home ownership sooner with the new First Home Loan Deposit Scheme
13 January 2020
If you’re thinking of buying your first home in 2020, there’s a new Federal Government initiative that could help you realise your dream of owning a home sooner. The First Home Loan Deposit Scheme (FHLDS) is offering loan guarantees, designed to help you get into your own home sooner, with less deposit.
Saving enough money for a deposit is one of the biggest barriers for first home buyers. And if your deposit is less than 20% of the total home price, you’ll need mortgage insurance, which can add thousands of dollars to upfront costs.
The good news is, the FHLDS allows eligible first home buyers on low and middle incomes to buy a home with a deposit of as little as 5%, by providing a guarantee. The scheme, which kicked off on 1 January 2020, will support up to 10,000 loans Australia-wide each financial year.
How does it work?
Basically, the Government, in conjunction with financial lenders, acts as guarantor, giving first home buyers the opportunity to secure a new home with just 5% deposit.
Administered by the National Housing Finance and Investment Corporation (NHFIC), the FHLDS works on a first-in, first-served basis, so you’ll have to be quick if you want to secure one of the 10,000 spots.
Plus, if you’re one of the successful applicants, you can still apply for Queensland’s First Home Owners’ Grant of $15,000 and stamp duty concessions, bringing down the size of your mortgage even further! You can find out more about the grant here.
Am I eligible?
To qualify for the FHLDS, single applicants must have earned less than $125,000 of taxable income in the previous financial year, or $200,000 for couples. Siblings, friends, parents or children do not qualify, and the scheme only applies to prospective owner-occupiers, not investment properties or holiday homes. You must have a minimum 5% deposit, up to a maximum of 20%. You can find out more about the specific terms and conditions here.
What kind of home can I buy under the scheme?
The scheme applies to property value, not property type. So it can be used for the purchase of a home, or the purchase of land and the construction of a home. There is a limit on the total house price the scheme will cover. In Queensland, the limit is $475,000 for a home in a capital city or regional centre, and $400,000 for a home located elsewhere in the state.
How do I apply?
You must apply for the scheme through a participating lender. You can see the full list of lenders on NHFIC’s website here.
How can Hallmark Homes help?
This exciting new government initiative coupled with the existing Queensland Government Grant, means that home ownership is now a lot more achievable. And Hallmark Homes have some fantastic options for first home buyers to consider.
Exclusive Yarrabilba Home & Land Packages from just $310,000!
A choice of five lots (while they last) are ready now! These fantastic, brand new 3-bedroom, 2-bathroom homes are incredible value, with inclusions like air conditioning, floor coverings throughout, beautiful stone benchtops in the kitchen and bathrooms, security screens, plus landscaping and fencing. You just have to move in!
You could be the next home owner in beautiful Yarrabilba, conveniently located between Brisbane and the Gold Coast! A blossoming community, Yarrabilba offers many amenities including schools, a Coles supermarket, bike paths, playing fields and neighbourhood parks. This is the perfect setting for a first home owner looking to be a part of a beautiful master-planned community. You can find out more about these fantastic Hallmark home and land packages here.
Get more home for your money with Hallmark.
With over 35 years experience, Hallmark offers a great selection of home designs, just perfect for first home buyers. So come and see some of the fantastic home designs that you could make your own under this generous new government scheme.
If you’re thinking of building a new home in South-East Queensland, the friendly team at Hallmark Homes is ready to help. Come and check out one of our display centres for yourself. If you have any questions about our home designs or house and land packages, please contact us today.