First Home Loan Buyers Deposit Scheme – What’s changing in 2020?

The federal government has launched an initiative to assist people in entering the housing market for the first time by underwriting home loans for first home buyers. The program provides a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a property with a deposit of as little as 5 per cent and avoid paying lenders mortgage insurance.

The Government scheme will support up to 10,000 loans each financial year, starting from 1 January 2020. It will operate on a “first-in, best-dressed” basis.

Under the scheme the Government will offer loan guarantees for Sydney properties worth up to $700,000, and $450,000 across the rest of New South Wales.

Applicants will be subject to eligibility criteria, including having taxable incomes up to $125,000 per annum for singles and up to $200,000 per annum for couples.

Major bank lenders which will be opening FHLDS applications from 1 January, 2020, are:

• National Australia Bank (previously announced)
• Commonwealth Bank

Non-major lenders which will be opening FHLDS applications from 1 February, 2020, are:

• Australian Military Bank
• Auswide Bank
• Bank Australia
• Bank First
• Bank of us
• Bendigo Bank
• Beyond Bank Australia
• Community First Credit Union
• CUA
• Defence Bank
• Gateway Bank
• G&C Mutual Bank
• Indigenous Business Australia
• Mortgageport
• MyState Bank
• People’s Choice Credit Union
• Police Bank (including the Border Bank and Bank of Heritage Isle)
• P&N Bank
• QBANK
• Queensland Country Credit Union
• Regional Australia Bank
• Sydney Mutual Bank and Endeavour Mutual Bank (divisions of Australian Mutual Bank Ltd)
• Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)
• The Mutual Bank
• WAW Credit Union