First home loan deposit scheme introduced

Article published on: 18-10-2019 and updated on 28-10-2019

Legislation has passed that allows eligible first home buyers to purchase a house with as little as a 5% deposit via the First Home Loan Deposit Scheme.
The Government has released consultation papers that provide more detail on how the scheme is intended to operate. The consultation period ends on 4 November 2019.

Key features


Key features of the scheme are:

  • it will commence on 1 January 2020

  • the number of loans will be capped at 10,000 pa

  • the National Housing Finance and Investment Commission will guarantee the difference between the deposit accumulated (a minimum of 5%) and 20% of the purchase price

  • applicants must be aged 18 years or older, not have held a freehold interest in Australian real property before, be purchasing or building an owner-occupied dwelling and earn a taxable income of up to $125,000 pa (for individuals) or $200,000 pa (for couples combined)

  • a maximum of two borrowers for each loan, with both applicants required to meet all eligibility criteria (including being legally married or in a de facto relationship)

  • regular principal repayments are required (ie the loan cannot be interest only) for the full term of the loan (maximum of 30 years)

  • caps will apply to the purchase price to ensure participation is spread fairly across the country (see table below), and

  • the scheme will complement (but not directly interact with) other measures such as the Government’s First Home Super Saver Scheme and First Home Buyer grants, as well as State and Territory based stamp duty concessions.

State/Territory            Capital City & Regional Centres*            Rest of State
NSW                            $700,000                                                      $450,000

VIC                              $600,000                                                      $375,000

QLD                             $475,000                                                      $400,000

WA                               $400,000                                                      $300,000

SA                                $400,000                                                      $250,000

TAS                              $400,000                                                      $300,000

ACT                             $500,000                                                       -

NT                                $375,000                                                       -

*The capital city price caps will apply to large regional centres with a population in excess of 250,000, namely the Gold Coast, Newcastle and Lake Macquarie, the Sunshine Coast, Illawarra (Wollongong) and Geelong.

The full list of lenders on the panel, along with NAB and CBA, are as follows (As of the 12/12/19):

  • Australian Military Bank

  • Auswide Bank

  • Bank Australia

  • Bank First

  • Bank of us

  • Bendigo Bank

  • Beyond Bank Australia

  • Community First Credit Union

  • CUA

  • Defence Bank

  • Gateway Bank

  • G&C Mutual Bank

  • Indigenous Business Australia

  • Mortgageport

  • MyState Bank

  • People’s Choice Credit Union

  • Police Bank (including the Border Bank and Bank of Heritage Isle)

  • P&N Bank


  • Queensland Country Credit Union

  • Regional Australia Bank

  • Sydney Mutual Bank and Endeavour Mutual Bank (divisions of Australian Mutual Bank)

  • Teachers Mutual Bank Ltd (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)

  • The Mutual Bank

  • WAW Credit Union


Applications for the scheme will begin on 1 January 2020 and can be made either directly to participating lenders or via the broker channel. The NHFIC will not be taking any direct applications.