First Home Loan Deposit Scheme

Introduced by Morrison Government ,First Home Loan Deposit Scheme will assist an eligible first home buyer to purchase a house with a 5% deposit. The government will provide a loan guarantee of up to 15% of the property’s value to First home buyers earning up to $125,000, or couples earning up to $200,000, per year. The scheme could also save you up to $10,000 in lenders mortgage insurance.

Saving a depost for first home can be challenging . From January 1, 2020, things may get a little easier if you’re one of 10,000 borrowers eligible for the  If you’re an eligible first home buyer, you’ll only need a 5% deposit to apply for a home loan. The additional 15% will be provided by the NHFIC (National Housing Finance and Investment Corporation (NHFIC). This scheme is administed by approved lenders.


Announced during the 2019 election, Coalition government allocated $500 million in the form of equity to the National Housing Finance and Investment Corporation (NHFIC). The aim is to make it easier for first home buyers to get into the property market and the pathway to their first home more achievable and faster.


Main points
  • Scheme are expected to open on January 1 2020.
  • First Home Loan Deposit Scheme helps eligible first home buyers purchase a house with a deposit as low as 5%.
  • First home buyers could save around $10,000 in Lenders Mortgage Insurance under our scheme.
  • Smaller lenders will be prioritised to help boost competition.
  • You will still need to borrow 95%, but you can avoid LMI.


Eligibility Criteria
  • Australian citizens who are at least 18 years of age. Permanent residents are not eligible.
  • Singles with a taxable income of up to $125,000 per annum and couples with a taxable incomeof up to $200,000 per annum. Incomes will be assessed for the financial year preceding the financial year in which the loan is entered into.
  • Couples are only eligible for the scheme if they are married or in a de-facto relationship. Other persons buying together, including siblings, parent/child or friends, are not eligible for the Scheme.
  • Applicants must have a deposit of between 5 and 20 per cent of the property’s value.
  • Loans under the Scheme require scheduled repayments of the principal of the loan for the full period of the agreement. If the loan relates both to the purchase of vacant land to the construction of a house on the land, the loan may be an eligible loan even if the terms of the loan agreement permit interest-only repayments for a specified period.
  • Applicants must intend to move into and live in the property as their principal place of residence (i.e. they must be owner occupiers).
  • Applicants must be first home buyers who have not previously owned or had an interest in a residential property either separately or jointly with someone else (this includes residential strata and company title properties, regardless of whether it was an investment or owner-occupied property and whether it was ever lived in).


Followings are caps on the prices of the properties that first home buyers can purchase.


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