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First Home Loan Deposit Scheme

First Home Loan Deposit Scheme

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The First Home Loan Deposit Scheme is changing, and it is now getting easier for a first home buyer to find a place in the scheme. The Federal Government announced some key changes that will increase the property price cap and make more places available.

So what is changing?

From July 1 2022, the following changes will occur:

  • The First Home Loan Deposit Scheme will be known as the First Home Loan Guarantee
  • The First Home Loan Guarantee will now have 35,000 places available. This is 25,000 more places for the financial year.
  • Property prices are increasing to the following amount – so you can now buy more realistically priced properties.
RegionPrice cap from July 1 2022
New South Wales—capital city and regional centre$900,000
New South Wales—other$750,000
Victoria—capital city and regional centre$800,000
Victoria—other$650,000
Queensland—capital city and regional centre$700,000
Queensland—other$550,000
Western Australia—capital city$600,000
Western Australia—other$450,000
South Australia—capital city$600,000
South Australia—other$450,000
Tasmania—capital city$600,000
Tasmania—other$450,000
Australian Capital Territory$750,000
Northern Territory$600,000
Jervis Bay Territory and Norfolk Island$550,000
Christmas Island and Cocos (Keeling) Islands$400,000

How do I qualify for the New Home Guarantee?

New Home Guarantee

Home Loan Broker What If We Finance advises the following key criteria must be met:

  • All applicants and spouses must be Australian Citizens. The scheme is not open to non-citizens
  • Single applicants can earn up to $125,000 per annum and joint applicants $200,000
  • This must be your first home.
  • You must satisfy the lending criteria of the bank.

How much deposit do I need?

You will need 5% of the purchase price plus Government fees. The following guide details the required minimum deposit for Victoria and potential savings:
Property PriceGovernment FeesDeposit incl feesLMI Savings
$400,000$1,220$21,220$13,684
$500,000$1,512$26,512$17,102
$600,000$1,746$31,746$20,552
$700,000$26,693$61,693$23,940
$800,000$45,284$85,284$27,360
While the above is a guide only the savings are substantial, and the New Home Guarantee is a scheme that should be explored.

Is a genuine deposit required?

Melbourne Mortgage Broker
Banks typically want to see 5% of the property value saved over 3 months. This is referred to as genuine savings. Your mortgage broker can assist if you do not meet this requirement and are paying rent on time.

How do I participate in the scheme?

Mortgage Broker Melbourne has helped many customers with the First Home Loan Deposit Scheme and our experience and availability 7 days a week means we can help you buy your dream home sooner than you think. Contact Us to find out more.

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