First Home Loan Deposit Scheme

The six ways young hopeful first home buyers will secure a spot in the new loan scheme from the Budget

PHOTO: Real estate agent Adrianna May at a newly sold property in Cronulla. There are 10,000 places for first home buyers purchasing new homes on the First Home Loan Deposit Scheme (FHLDS), which is part of the 2020-21 Federal Budget

  • There are 10,000 places on the First Home Loan Deposit Scheme (FHLDS)
  • The scheme helps first home buyers purchasing new homes as part of budget
  • Scheme users only pay a 5 per cent deposit avoid lenders’ mortgage insurance
  • Since spaces are limited, first home buyers need to apply before time runs out
  • First home buyer Jamie Stock advised people begin saving as soon as possible

First home buyers could save thousands of dollars under the budget’s new loan scheme but there are several ways to ensure a successful application.

There are just 10,000 spots for first home buyers purchasing new homes on the First Home Loan Deposit Scheme (FHLDS), which is part of the 2020-21 Federal Budget.

Usually first home buyers with less than a 20 per cent deposit need to pay the bank lenders’ mortgage insurance, which is often expensive.

But under the FHLDS, first home buyers only need a 5 per cent deposit and can avoid lenders mortgage insurance because the National Housing Finance and Investment Corporation guarantees up to 15 per cent of the value to the lender.

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