A Basic Guide to the First Home Loan Deposit Scheme

As one of the most definitive achievements that anyone could possibly ever experience in their lifetime, the feeling of finally owning a home symbolizes a culmination of years of hard work. Given the fact that it is considered as the realisation of the great Australian Dream, the privilege of homeownership is essentially something that many people strive to achieve.

Although the earnest desire to own a property stays strong in the hearts of many today, the esteemed badge of homeownership has only been achieved by 66 per cent of households so far. Fortunately, if you fall under the 34 per cent that still has yet to own a home, purchasing one doesn’t have to be a far fetched dream if you utilise the First Home Loan Deposit Scheme.

An overview of the scheme

The First Home Loan Deposit Scheme (FHLDS) is essentially the Australian Government’s main effort in helping aspiring homeowners to attain their very goal. Built on that main goal, the FHLDS was introduced to the public in 2019 and enacted into full effect by January 1, 2020. Generally, the program targets low and middle-income earners that aim to buy their first home but do not have the necessary financial means to do so.

Through the use of this program, any Australian who qualifies will be able to purchase their own property with a five per cent minimum deposit to ease up the purchasing process. This makes it 15 per cent less than a traditional mortgage. From the time of implementation, the government aims to process up to 10,000 home loans every financial year to aid citizens amidst increasing inflation rates.

The run-down of the FHLDS

Before you jump at the chance of homeownership, it is essential to first brush up on the necessary knowledge before sending in your application. Generally speaking, the requirements list for this scheme is similar to any other Australian government programme. Here are the necessary criteria that you’ll need to follow to qualify for the scheme:

  • At least 18 years of age, an Australian citizen, and a Medicare cardholder
  • Must be a first-time homebuyer with no history of residential property ownership, regardless of whether it is separately of jointly
  • If you are single, your taxable income must not surpass $125,000 annually. If you are a couple, your combined taxable income must be no more than $200,000 per annum
  • Couples must either be married at the time of application or in a proven de facto relationship
  • The property that you intend to buy must be within the bounds of your suburb and postcode of the prospective location that you’re looking at

Why you should look into applying for the FHLDS

Thanks to the proper structuring of the loan plan, anyone can enjoy a wide range of benefits when applying for the FHLDS. If you’ve been looking to achieve your lifelong goal of homeownership, here’s why you should jump at the chance to apply for the scheme:

  • Applicability with the First Home Super Saver Scheme (FHSSS): With the help of the FHSSS, you can leverage every financial obligation related to the property in your advantage by using your voluntary superannuation contributions for the deposit. As opposed to other types of mortgages, you won’t have to withdraw from your savings or apply for a high-interest loan to make the down payment on a property!
  • No need for Lenders Mortgage Insurance (LMI): By using the FHLDS scheme, you can save a tremendous amount on the cost of homeownership because you won’t have to pay LMI when you make your deposit.


Thanks to the First Home Loan Deposit Scheme, aspiring Australians now have an opportunity to get their hands on a property and call it their own with more convenient payment terms and arrangements.

Looking to own a home in the Perth area but need to help of a financial advisor to make sure that you are making the right decisions? Get in touch with us today to see how we can help!