First Home Loan Deposit scheme

The First Home Loan Deposit Scheme is a Federal Government initiative run by the National Housing Finance and Investment Corporation (NHFIC).

The aim of the Scheme is to shorten the time first home buyers have to save a deposit to buy a home. 

The Scheme works by giving first home buyers the opportunity, to:

  • purchase a home with a 5% deposit
  • avoid paying Lenders Mortgage Insurance (LMI)

You're required to pay LMI if you’re borrowing more than 80% of your home’s purchase price. Under the Scheme, the Federal Government acts as a guarantor for up to 15% of your home loan meaning you won't have to pay this cost.

Each financial year, the NHFIC releases 10,000 Scheme places through participating banks and lenders

Applications to take part in the Scheme are done directly through a lender. This can be competitive as places are limited, so it's best to talk to your lender about availability. 

There are requirements set by the NHFIC that you'll need to meet to access the Scheme, including:

  • income limits
  • prior property ownership test
  • minimum age
  • a deposit requirement
  • an owner-occupier requirement

Consider checking the eligibility requirements before starting your application using the eligibility tool.