• Mark Sinclair

How Does The First Home Loan Deposit Scheme Work?

Updated: Apr 7

Update: May 2021 - The government announced a Family Home Guarantee aimed at single parents where the minimum deposit is 2% and will be available from July 1, 2021.

The First Home Loan Deposit Scheme (FHLDS) is a Australian Government initiative to support eligible first home buyers purchase a home sooner.

It does this by providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5 per cent. This allows first home buyers to avoid paying Lenders Mortgage Insurance when borrowing with between 5% to 20% deposit.

The Scheme supports limited places each financial year, starting from 1 January 2020.


Singles earning less than $125,000 in the previous tax year, couples earning less than $200,000. Minimum deposit required is 5% of purchase price. No party has held property prior. Australian citizens only. Min age 18 years. Owner occupiers only.

Property price thresholds

For Sydney/Newcastle/Wollongong, there is a cap of $800,000 on the purchase price. For Melbourne/Geelong, it is $700,000, Canberra it is $500,000 and Brisbane it is $600,000. Other cities and regional areas have purchase price caps ranging from $350,000 to $600,000.

How to apply

If you think you qualify, contact us and we will get you started. Note that only a limited number of lenders are participating in this scheme.


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