First Home Loan Deposit Scheme reissues 1,800 spots: Are you eligible?

Sydney houses from overhead.

The Australian Government recently announced it will be reissuing 1,800 unused spots from the first round of the First Home Loan Deposit Scheme, meaning any buyers who missed out last year will have another chance to access a spot. 

The program, which is administered by the National Housing Finance and Investment Corporation (NHFIC), aims to help first home buyers get on the property ladder sooner by guaranteeing up to 15 percent of a property’s value.

The quick uptake of the scheme prompted the Government to add an extra 10,000 spots in October last year, however these are restricted to buyers who plan to build or purchase new builds. Of this batch, just over 4,200 spots have been secured so far.

Home buyers taking advantage of the 1,800 reissued spots will be able to purchase existing homes, with price caps varying depending on the location of the property.

“Helping Australians get into a home of their own and supporting tradies’ jobs are both key priorities for the Morrison government as we build our comeback from the COVID-19 recession,” said housing minister Michael Sukkar.

Am I eligible?

Spots are limited and likely to be snapped up fairly quickly. To be eligible, applicants will need to meet the following criteria:

  • You are an Australian citizen and at least 18 years of age.
  • You are a genuine first home buyer, meaning you haven’t previously owned or held a freehold interest in a residential property, either separately or jointly.
  • For individuals, your taxable income for the previous financial year does not exceed $125,000. For couples, your combined taxable income does not exceed $200,000.
  • The price of the property you intend to buy does not exceed the NFIC’s region-specific thresholds.
  • You have a deposit of between 5% and 20% of the property’s value.
  • You intend to take out an owner occupied loan and make principal and interest repayments.

Assuming you tick all those boxes, you’ll also be subject to a credit and lending check by your chosen lender. To improve your chances, make sure you don't have any lingering debts and avoid applying for any new credit products.

You’ll also need to show proof of genuine savings. While lenders might differ in what they consider ‘genuine,’ large sums of money received via gift, inheritance, or the sale of assets are generally not included.

How to apply

To apply for a spot in the FHLDS, you’ll need to get in contact with one of the 27 participating lenders (a full list is available on the NHFIC website). Keep in mind the NHFIC doesn’t issue loans, so it won’t be accepting any applications.

You should have a few documents handy, including identification and last income year’s Notice of Assessment from the Australian Taxation Office. Your lender may request more depending on their processes.

Applications can be sent to more than one participating lender, but you’ll only be offered one place in the scheme if successful. If you’re granted a spot and decide to change lenders, the NHFIC may be able to transfer the reservation, but you’ll have to be mindful of the 90-day deadline for entering a contract of sale.

For more information, read our comprehensive guide to the First Home Loan Deposit Scheme. And for a look at where interest rates currently sit, head over to our home loan comparison page or browse the selection below.

Home loan comparisons on Mozo - last updated 17 January 2022

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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