First Home Loan Deposit Scheme

We’re proudly supporting the Government’s First Home Loan Deposit Scheme.

About the Scheme

The First Home Loan Deposit Scheme is an Australian Government initiative to help first home buyers get into their first home sooner. Australian Military Bank is proud to be supporting the initiative and supporting eligible first home buyers enter the property market.

What is the Scheme?
The First Home Loan Deposit Scheme is a new initiative by the Australian Government to support eligible first home buyers purchase a home sooner without having to pay lender's mortgage insurance
How does it work?
Eligible applicants will receive a limited guarantee from the Australian Government to purchase their first home with a deposit of as little as 5%
When's it available?
The First Home Loan Deposit Scheme will support up to 10,000 loans each financial year with Australian Military Bank offering loans under the Scheme from 1 February 2020

Scheme Eligibility

To apply for the Scheme, you'll be subject to certain eligibility criteria. You need to be able to provide documentation of your eligibility to secure your position.

The National Housing Finance and Investment Corporation's (NHFIC) Scheme eligibility tool

To make things easier, the government have created an online tool to help you to understand whether you are eligible for the Scheme. Simply choose below whether you wish to apply as an individual or as a couple.

  • Eligibility criteria includes
  • All applicants must be First Home buyers
  • Individuals must have earned less than $125,000 and couples less than $200,000 in the last financial year. Couples must be married or de-facto
  • All applicants must be at least 18 years of age, Australian citizens and have a Medicare card
  • There are property price caps which vary depending on the location in which you buy. You can work out your property price cap using NHFIC’s online tool

FHLDS

Are you a first home buyer? First Home Loan Deposit Scheme Enquiry Form

*Mandatory fields

Here's what you'll need to apply

A bank statement showing your everyday transactions over the last three (3) months.
Your last two (2) payslips.
An identification document (ie. Drivers Licence, Passport or MediCare Card).
Other Home Buying Assistance Grants and Concessions?

Australian Military Bank is pleased to be offering access to several meaningful advantages to members of the Australian Defence Force to realise their dream of first home ownership.  

Home loan interest rates are at historical lows and as of February 2020 there will be a total of four key programs that Australian Military Bank members can access each designed to reduce the cost of first home ownership;

  • First Home Loan Deposit Scheme (purchase with as little as 5% deposit and pay no Lenders Mortgage Insurance)
  • DHOAS Loans – Monthly home loan subsidy that increases with the length of service. For more information, visit: https://www.dhoas.gov.au/.
  • First Homeowners Grant  – up to $10,000 for eligible properties. To find out more, visit: http://www.firsthome.gov.au/.
  • First Homebuyer Stamp Duty – exemption of stamp duty for eligible properties (depending on the state/territory). 

We know that the home loan process can be daunting. For assistance or any further information about our Home Loans, call us on 1800 752 349, visit your local branch, make an appointment with a mobile banker or, if you’re ready, feel free to apply online.

FAQs

What is Lenders Mortgage Insurance (LMI)?

LMI is a requirement for borrowers when their home loan deposit is less than 20% of their property’s purchase price. This is charged at the time of settlement and can be paid up front or capitalised onto the total loan amount (conditions apply).

 

What is the First Home Loan Deposit Scheme?

The Scheme is a new initiative by the Australian Government to support eligible first home buyers purchase a home sooner. Generally, customers today need to save at least 20% of the property’s value to secure a home loan without needing to pay LMI. Under the scheme, the NHFIC will provide a Guarantee of up to 15% of the property’s value. The Scheme will support up to 10,000 loans each financial year and will be accessible to members through Australian Military Bank from 1 February 2020.

Ahead of this date, customers can check their potential eligibility on the NHFIC website. The eligibility criteria is complimented by the property price lookup tool, which is also available on the NHFIC website. This has also been developed to assist first home buyers determine the property price threshold that applies under the Scheme in relation to properties in every suburb around the country.

In support of the Scheme and Australian Military Bank’s commitment to first home buyers, the Bank will not charge eligible customers higher interest rates than equivalent customers outside of the Scheme. Further information about products available to members eligible for the Scheme will be released early in the new year.

 

Other Home Buying Assistance Grants and Concessions?

Defence Home Ownership Assistance Scheme (DHOAS)

DHOAS assists current and former Australian Defence Force (ADF) members and their families to achieve home ownership. DHOAS is administered by the Department of Veterans' Affairs on behalf of the Department of Defence. The Scheme is aimed at improving ADF recruitment and retention. The longer you serve in the ADF, the more entitlement you accrue under DHOAS and the longer you can receive assistance. To be eligible, you must have served within the last two years of applying for DHOAS, completed a qualifying period of service and accrued a service credit. You will need to take out a DHOAS home loan and meet the Scheme conditions, including occupancy requirements, to receive the monthly subsidy payments. 

For more information, visit: https://www.dhoas.gov.au/

 

First Home Owner Grant

If you’re starting out, you might qualify for a First Home Owner Grant (FHOG). Rules and conditions vary for each state and territory and can change from time to time.

To find out more, visit: http://www.firsthome.gov.au/

 

Stamp duty concessions

If you’re buying your first house, you may also qualify for stamp duty concessions (depending on the state/territory). 

 

Which home loans are eligible for the Scheme?

Not all home loans are able to take the benefit of the Scheme. The Scheme is restricted to ‘Eligible Loans’, which are home loans:

  • made by a Participating Lender to (1) a single eligible first home buyer, or (2) a couple who are both eligible home buyers, and
  • that are for the purchase of an Eligible Property that is to be occupied by you as the owner, for as long as it is backed by the Scheme

In addition to these overarching eligibility requirements, the loans must:

  • be secured by a registered first ranking mortgage over the eligible property
  • have no other registered owners at the time of settlement other than the eligible borrower/s
  • have 100% of the loan drawdown proceeds used for the purchase (or towards the purchase and improvement) or construction of the eligible property
  • have a loan amount commitment not less than 80% and not more than 95% of the relevant Value of the property
  • have a loan term of 30 years or less
  • require regular principal and interest loan repayments. Exception to this will be granted during the construction of a new dwelling, whereby lenders will be able to allow borrowers to make interest only repayments for the period in which the dwelling is being constructed until it can be occupied by the borrower.
  • allow for no changes to loan terms, such as increased limit

​For more information, visit: https://www.nhfic.gov.au/what-we-do/fhlds/eligibility

 

Which properties are eligible for the Scheme?

  • For a property to be eligible for the scheme it must:
  • be a ‘residential property’ – this term has a particular meaning under the Scheme, and you should ask your lender if there is any doubt
  • have a purchase price under the price cap for its location – click here to view the property price caps
  • be purchased by an eligible first home buyer under the scheme
  • at the settlement date for your home loan, you will be the sole registered owner/s of the property
  • be a property which is (1) an established dwelling, or (2) a new-build dwelling that is purchased under a house and land package, a land and separate contract to build a home or an ‘off-the-plan’ arrangement that is financed under an Eligible Loan from a participating lender

​For more information, visit: https://www.nhfic.gov.au/what-we-do/fhlds/eligibility