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Further details regarding the new 10,000 places released under the First Home Loan Deposit New Home Guarantee scheme have now been released.
Last week, the federal government handed down the 2020-21 budget, outlining a swathe of tax cuts, concessions and payments to help encourage spending and rebuild the economy following the impacts of the COVID-19 pandemic and its associated recession.
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Among the measures announced by Treasurer Josh Frydenberg was the commitment to make available an additional 10,000 places under the popular First Home Loan Deposit Scheme (FHLDS).
This doubles the total amount of places originally made available this financial year to 20,000.
The news was welcomed by brokers, lenders and aggregators alike.
What the FHLDS New Home Guarantee entails
The National Housing Finance and Investment Corporation (NHFIC) has now released further details of the additional spots.
The additional 10,000 places form part of what is now being called the FHLDS New Home Guarantee (NHG) for new homes and newly built homes.
The additional scheme allocations are available to first home buyers that are Australian citizens and at least 18 years old and wish 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.
According to the NHFIC, eligible properties include:
- newly constructed dwellings (e.g. whether a freestanding house, townhouse or apartment)
- 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.
Like the original FHLDS, the New Home Guarantee is means tested.
The FHLDS NHG is only available to first 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 for the NHG.
A revised set of property price caps also apply for eligible properties under the NHG.
They are as follows:
|
Region |
NHG property price cap |
|
NSW – Capital City and Regional Centre |
$950,000 |
|
NSW – Other |
$600,000 |
|
Vic – Capital City and Regional Centre |
$850,000 |
|
Vic – Other |
$550,000 |
|
Qld – Capital City and Regional Centre |
$650,000 |
|
Qld – Other |
$500,000 |
|
WA – Capital City |
$550,000 |
|
WA – Other |
$400,000 |
|
SA – Capital City |
$550,000 |
|
SA – Other |
$400,000 |
|
Tas – Capital City |
$550,000 |
|
Tas – Other |
$400,000 |
|
ACT |
$600,000 |
|
Northern Territory |
$550,000 |
|
Jervis Bay Territory & Norfolk Island |
$600,000 |
|
Christmas Island & Cocos (Keeling Island) |
$400,000 |
[Related: Lenders applaud FHLDS expansion]
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