Federal Government First Home Loan Deposit Scheme
Federal Government First Home Loan Deposit Scheme
What is the First Home Loan Deposit Scheme?
The Federal Government First Home Loan Deposit Scheme (FHLDS) is a scheme that helps first-home buyers purchase a home with a deposit of as little as 5%. The scheme was introduced in 2019, and is designed to help first-home buyers in Australia get into the property market and reduce the time it takes them to save for a deposit.
How does the Scheme Work?
The FHLDS is a joint initiative between the federal government and approved lenders. Under the scheme, the federal government guarantees up to 15% of the value of a borrower’s loan. This means that first-home buyers can purchase a home with a deposit of 5%, instead of the usual 20% deposit required for most home loans.
Who is Eligible for the Scheme?
To be eligible for the FHLDS, you must be an Australian citizen or permanent resident, and you must be over 18 years of age. You must also be purchasing a property to live in, and not an investment property. You must have an income of less than $125,000 per year if you’re single, or combined income of less than $200,000 per year if you’re purchasing a property with someone else.
What Types of Properties are Eligible?
The property must be a principal place of residence and must be located in Australia. The property price must not exceed the FHLDS price cap, which is currently set at $700,000 for most capital cities and regional areas. The property must also meet the requirements of your lender.
How Can You Apply for the Scheme?
To apply for the FHLDS, you need to find an eligible lender and apply for a loan. You will need to provide evidence of your income, assets, and liabilities, as well as proof of identity. Once your application has been approved, you will be able to access the scheme.
What are the Benefits of the Scheme?
The FHLDS is a great way for first-home buyers to get into the property market with a smaller deposit. By having the federal government guarantee up to 15% of the value of the loan, first-home buyers can purchase a property with a deposit of just 5%, compared to the usual 20% deposit required for most home loans.
Conclusion
The FHLDS is a great initiative by the federal government to help first-home buyers get into the property market. It can help reduce the time it takes to save for a deposit, and can help first-home buyers access the property market with a smaller deposit.
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