Government extends support to First Home Loan Deposit Scheme applicants amid coronavirus auction ban

By Katherine O'Chee · · 2 min read
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The Federal Government has extended the loan approval period for first home buyers under the First Home Loan Deposit Scheme as coronavirus shutdowns bring new challenges to finding a property. 

Successful applicants were previously required to snag a property within 90 days of approval. But the National Housing Finance and Investment Corporation (NHFIC) yesterday announced that the 27 participating lenders can now give these borrowers another 90 days (or three months), given that they are still eligible and meet the bank’s lending criteria. 

This decision comes after further social distancing measures introduced last week included a ban on on-site real estate auctions. As a result, 40% of auctions across the country were pulled from the market, while preliminary auction clearance rates plummeted to 51.4% - the lowest level since June 2019. 

“The option to extend the 90 day pre-approval period gives both scheme lenders and first home buyers the flexibility and support to deal with the evolving COVID-19 situation,” NHFIC Chief Executive, Nathan Dal Bon said. 

As of late March, over 4,700 of the 7,661 approved applicants have still yet to find a home.

RELATED ARTICLE: Virtual home buying is officially a thing! Here’s how it works

What is the First Home Loan Deposit Scheme? 

The First Home Loan Deposit Scheme, launched in January this year, allows eligible first home buyers to borrow from participating lenders with as little as a 5% deposit, while dodging the cost of Lenders Mortgage Insurance (LMI). This is thanks to the government’s guarantee of the remaining 15% deposit requirement. 

Among the participating lenders are big banks NAB and Commonwealth Bank. 

Around 2,000 more spots remain open in the current financial year, with an additional 10,000 places set to become available from July 2020, according to the NHFIC. 

But with economic conditions worsening in light of COVID-19 and the RBA predicting that the current period of disruption could continue to the latter part of the year, it’s expected the takeup of those places may not be as enthusiastic as the first round. 

For more information, check out our comprehensive guide on the First Home Loan Deposit Scheme. Or scroll down below for a list of loan options for first home buyers.

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Last updated 5 December 2025 Important disclosures and comparison rate warning*
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Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • First Home Buyer Loan

    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • For first home buyers
    • Offset available
    • Redraw available
    Interest rate
    4.99 % p.a.
    Variable
    Comparison rate
    5.04 % p.a.
    Initial monthly repayment
    $2,681
    Go to site
    • Competitive interest rate – 4.99% p.a. (comparison rate* 5.04% p.a.)
    • Offset account to reduce interest and save on repayments
    • No establishment or monthly fees, plus valuation fees waived up to $1,000 (limited time)

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.09 % p.a.
    Fixed 2 years
    Comparison rate
    5.43 % p.a.
    Initial monthly repayment
    $2,712
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • Discount Great Rate Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.20 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • Get up to $3,000 cashback when you apply online (T&Cs apply)
    • No paperwork or payslips required (see site for details)
    • Low variable rate

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.29 % p.a.
    Variable
    Comparison rate
    5.33 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.39 % p.a.
    Variable
    Comparison rate
    5.42 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months
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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. You can change the loan amount and term in the input boxes at the top of this table. 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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