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The First Home Loan Deposit Scheme: spots open back up from 1 July 2020

first home loan deposit scheme

The dream of buying your first home with a small deposit amount, without needing to pay Lenders Mortgage Insurance (LMI) will soon be an option again for some first home buyers, with the Government’s First Home Loan Deposit Scheme releasing another 10,000 spots from 1 July 2020.

Many first home buyers have the capacity to meet loan repayments on a new proposed mortgage. However, it’s the deposit many find challenging because it’s no easy feat to save a large amount of cash, with increasing rents and higher costs of living.

The Reserve Bank of Australia found that that a household who saves 15 percent of their income, will take about eight years to save a 20 per cent deposit to buy a median priced home. Eight years is a long time to be working towards your first home purchase!

Whilst there are some strategies already available for first home buyers who don’t have a significant deposit saved, the First Home Loan Deposit Scheme may also assist.

As we’ve talked about before, the First Home Loan Deposit Scheme eliminates the need for you to pay LMI. It can help you get into the property market sooner by reducing the amount of cash you need to contribute to your first home purchase.

First things first… will you be eligible?

  • If you’re applying as an individual, you cannot have earned more than $125,000 in 2019/20
  • If you’re applying as a married (or defacto) couple, your combined household income must be no more than $200,000 in 2019/20
  • The property you are purchasing must fall below the price caps outlined below. Price caps vary between States and city/ regional areas.
  • Eligible first home buyers must be able to satisfy 5% genuine savings requirement of lenders
  • Borrowers must make Principal & Interest repayments on their new owner-occupied loan.


How do you apply? And will you secure a spot?

The number of participants who can access this scheme is capped to 10,000 first home buyers each year. And on 1 July, another allocation of positions became available.

Whilst we can’t predict how quickly these positions will remain available, since the number of first home buyers each far exceeds 10,000, we suspect the spots won’t last long.

There are a number of lenders on the FHLDS panel and the process to apply for the Scheme will depend on the lender you seek finance from. It’s generally done at the same time as you seek Pre-Approval though.

Something important to note is that acceptance of a position in the FHLDS requires evidence of your 2019/20 income by analysing individual applicant’s NoA’s. This means your 2019/2020 tax returns may need to be completed and submitted to the ATO before you can apply for (or secure a position in) the FHLD Scheme.


Property price caps

A city or large regional centre is defined as having a population of more than 250,000.


  • Capital city/ large regional centre: $700,000
  • Other areas: $450,000


  • Capital city/ large regional centre: $600,000
  • Other areas: $375,000


  • City or large regional centre: $475,000
  • Other areas: $400,000

Western Australia

  • City or large regional centre: $400,000
  • Other areas: $300,000

South Australia

  • City or large regional centre: $400,000
  • Other areas: $250,000


  • City or large regional centre: $400,000
  • Other areas: $300,000


  • $500,000

Northern Territory

  • $375,000


What’s the first step to purchase your first home?

The first step is to reach out to us to determine whether you’re eligible for the Scheme (and find out what other First Home Buyer Concessions you may be eligible for).

We’ll let you know what kind of purchase price you could manage right now and advise what strategies may help you to purchase the type of home you’re after.

Find out more about our service for first home buyers here.

To get started right now, leave your contact details here and we’ll be in touch.



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