The First Home Buyers Assistance Scheme – A Quick Overview from NBS Home Loans

The First Home Buyers Assistance Scheme – A Brief Overview from NBS Home Loans


Have you heard about the First Home Loan Deposit Scheme scheduled to commence on 1 Jan 2020? People are calling it the First Home Buyers Grant NSW 2019 searching for it on the internet, however it launches in 2020.

Wondering what it’s all about? Read on for some useful information…

Normally, borrowers will need to save a 20% deposit to avoid paying Lenders Mortgage Insurance. (Lenders Mortgage Insurance, or LMI, is a type of insurance that protects the lender – not the borrower – against the risk of not being able to recover their loan.) Under the First Home Loan Deposit Scheme, you may be able to avoid paying LMI if you have saved a deposit of just 5%, potentially saving you tens of thousands of dollars in LMI costs.

While we are still waiting for further details to be announced, here is what we know at this stage:

The scheme will only be open to the first 10,000 eligible participants across Australia.

Participants will be required to meet eligibility criteria, including:

– You must be a first home buyer.

– You must be earning under $125,000 per year for single borrowers, or $200,000 combined for couples.

– The mortgage will need to be an owner-occupier loan (i.e. not an investment property) with principal & interest repayments.

– There are caps on the maximum value of the property you can purchase under this scheme. Early indications are that in Sydney, the property must be valued at or under $700,000, with different caps applying to other capital cities and regional areas.

It’s also important to note that you’ll still need to meet normal lending criteria to ensure you are eligible for the loan and can meet the repayments.

There has not yet been confirmation of which banks and lenders will participate in the scheme, but we expect this information should be announced soon.

At NBS Home Loans we have over 40 lenders on our panel, so we can compare a huge range of loans to find one that suits your needs without you having to do any of the running around.

In addition to this new scheme, it’s worth keeping in mind that there are currently a number of other incentives available to first home buyers. In NSW, these include stamp duty concessions or exemptions and grants to assist with new builds.  You can also see to check for grants available in your state.

If you are hoping to take advantage of the First Home Loan Deposit Scheme, now is the time to click or tap to call us on 1800 NBS LOAN or 0434 103 326!

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