The First Home Loan Deposit Scheme 2020-2021 (FHLDS) | New Home Guarantee


As part of the 2020-2021 Federal Budget, an additional 10,000 First Home Loan Deposit Scheme (FHLDS) places have been made available for the 2020-21 financial year. In a bid to stimulate the economy and create new jobs in the construction sector, these new places are only available to eligible first home buyers who build a new home or purchase a newly built dwelling; They do not apply to existing dwellings.

Price caps have also been increased under the FHLDS New Home Guarantee

Successful applicants will be able to buy or build new homes worth up to $950,000 in Sydney (up from $700,000) with as little as a 5% deposit, with price caps also increased across other capital cities and regional areas.

Usually, first home buyers with less than a 20% deposit need to pay lenders mortgage insurance. Under the FHLDS New Home Guarantee, eligible first home buyers with a deposit of at least 5% do not have to pay this additional cost, potentially saving tens of thousands of dollars. First home buyers may also be eligible for additional incentives under other schemes, such as waived or discounted stamp duty, as well as grants for new or recently constructed homes.

Allocation of FHLDS places commenced on 6 October 2020 and will end by 30 June 2021. However, it’s worth noting that previous scheme places were snapped up quickly, so now is the time to call us if you are considering entering the property market for the first time.

NBS Home Loans - Finance Broker Australia