First Home Loan Deposit Scheme – a simple guide

First home loan deposit scheme couple

First Home Loan Deposit Scheme (New Homes)

At CUA, we’re thrilled to keep helping more first home buyers step onto the property ladder, with our continued involvement in the Australian Government’s First Home Loan Deposit Scheme (FHLDS). And, with an additional 10,000 FHLDS (New Homes) places announced in the recent Federal Budget, we’re even happier to be able to help. The new places for the 2020-21 financial year aim to specifically support eligible first home buyers purchasing new homes.

Applications are now open.
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What is the First Home Loan Deposit Scheme (New Homes)?

Under the Scheme, the National Housing Finance and Investment Corporation (NHFIC) provides eligible first home buyers with a guarantee to purchase a new home with a minimum 5 per cent deposit. It means that borrowers can apply for a CUA home loan with a smaller deposit, without the additional cost of lenders’ mortgage insurance.

Eligibility for FHLDS (New Homes)

The additional 10,000 FHLDS (New Homes) places are for eligible first home buyers to build a new dwelling or purchase a newly built dwelling with a deposit of between 5 and 20 per cent of the property’s value (lenders criteria applies).

Eligible FHLDS (New Homes) properties include:

  • newly constructed dwellings (e.g. whether a freestanding house, townhouse or apartment) - the dwelling must have been completed on or after 1 January 2020
  • off-the-plan dwellings (e.g. whether a freestanding house, townhouse or apartment)
  • house and land packages
  • land and a separate contract to build a new home.

To be eligible, the borrower purchasing the newly built dwelling must be a first home buyer.

A revised set of property price caps will apply specifically for eligible properties under the FHLDS (New Homes). You can view the price caps here.

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FHLDS (New Homes) timeframes

Because the FHLDS places are specifically for new home purchases, the following timeframes apply. If buying a new home:

  • you must enter into a contract of sale to purchase your new home within 90 days of being pre-approved
  • for an off-the-plan property, the contract of sale must be dated on or after 7 October 2020. Generally, the building of your off-the-plan property must start within 6 months and finish within 24 months
  • for a newly constructed dwelling, the dwelling must have been completed on or after 1 January 2020.

If you are building a new home (house and land package or as a land and separate contract to build a home):

  • you must enter into an eligible building contract within 90 days of being pre-approved
  • you must start building within 6 months of entering into the eligible building contract and finish building within 24 months of starting
  • have a contract of sale dated on or after 7 October 2020.

How do I know if I’m eligible?

You’ll need to supply documentation to show that you meet the scheme eligibility criteria, including:

  • all applicants must be first home buyers, aged 18 years and over, be Australian citizens and have a Medicare card
  • applicants must hold a deposit of between 5 per cent and 20 per cent, comprised of genuine savings
  • in the last financial year, individuals must have earned less than $125,000 and couples less than $200,000
  • you’ll need to have your 2019-20 tax returns completed and have received a notice of assessment from the ATO
  • couples must be married or in a de-facto relationship.

CUA’s normal lending criteria will also apply. The government has created a handy online tool to help you check your eligibility for the scheme.

Eligibility for individuals

Eligibility for couples

Application Steps

  1. Check your eligibility using the online tools above.
  2. Chat to a CUA Home Loan Specialist about our home loan options and how CUA can reserve your place under the scheme.
  3. Buy an eligible home within 90 days of scheme approval.
  4. Move into your home within 6 months of settlement (exceptions apply for new builds).

Register your interest

Simply complete and submit the form and a CUA Home Loan Specialist will be in touch.

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Speak to a CUA Home Loan Specialist

Ask us in branch, on 133 282 or via our iM CUA app. Alternatively, download the FHLDS (new Homes) Fact Sheet.

More articles for first home buyers

Important information: Loans are issued by Credit Union Australia Ltd (CUA) ABN 44 087 650 959 AFSL and Australian Credit License 238317 to approved applicants only. CUA’s lending criteria, terms, conditions, fees and charges apply. The National Housing Finance and Investment Corporation releases 10,000 Scheme places per financial year (the 10,000 additional First Home Loan Deposit Scheme (New Homes) places are in addition to this quota). Ask us for details. More information about the First Home Loan Deposit Scheme and the NHFIC is available at www.nhfic.gov.au.

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