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First Home Loan Deposit Scheme Extension – What You Need To Know As First Home Buyers in Queensland?

The popular First Home Loan Deposit Scheme (FHLDS) QLD has been extended for eligible first time home buyers in Queensland, Australia. This means there another 10,000 places up for grabs.  

These places have been reserved exclusively for people wanting to build a home or buy a newly constructed home. 

Here is everything you need to know about Queensland’s First Home Owners Deposit Scheme.

What Is The First Home Loan Deposit Scheme QLD?

The First Home Buyer Loan Deposit Scheme QLD is an Australian Government initiative to support eligible first home buyers to build or purchase a new home sooner. 

The FHLDS Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC).

In the 2020-21 Federal Budget, the Australian Government announced an additional 10,000 Scheme places for the 2020-21 financial year, specifically for eligible first home buyers building or purchasing new homes. 

These additional places are known as the Deposit Scheme For First Home Loan Buyer (New Homes). 

There are currently 27 participating lenders across Australia offering places under the FHLDS Scheme.

Currently, the Scheme has already delivered 20,000 places to date. 

What Does 5 Percent Deposit Scheme For Me?

Usually, first home buyers with less than a 20 percent deposit need to pay lenders mortgage insurance. Lenders mortgage insurance often adds thousands of dollars to the cost of your home loan. Under the FHLDS Scheme, eligible first time home buyers can purchase or build a new home with a deposit of as little as 5 percent. 

This is because NHFIC guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer.

The Finer Details

Queensland’s FHLDS Scheme Extensions cover first home buyers who want to buy:

  • A new house that has never been lived in
  • A house and land package that’s yet to be built (or is in the process of being built)
  • An “off the plan” property 
  • A block of land and then build a house on it

Like the original FHLDS, the Scheme is means tested. It is only available to first time home buyers who have a taxable income of up to $125,000 per annum for the previous financial year (if applying as a single applicant) or a combined taxable income of up to $200,000 per annum (if applying as a couple). Investment properties are not eligible. 

A revised set of property price caps also apply for eligible properties under the Scheme. For Queensland in Brisbane and regional centres the price cap is $650,000 and for regional Queensland, it is $500,000. 

First Time Home Loan Deposit Scheme Applications opened on 3 November and history shows that these places often run out quickly. It’s best to speak directly to your mortgage broker in Queensland to see if you’re eligible to apply for the Scheme’s extension. 

The cut-off date for FHLDS (first home buyer loan) applications is 30 June 2021, or if they run out before. Contact the Coronis Finance mortgage brokers and apply for the 2021 First Home Owners Loan Deposit Scheme in Queensland.