Australian Government
First Home
Loan Deposit
Scheme
Scheme Information Guide
1 July 2020
Contents
Important informaon 3
1. How the Scheme works 5
2. Are you an eligible rst home buyer? 9
3. Is your lender approved for the Scheme? 17
4. Which home loans are eligible for the Scheme? 19
5. Which properes are eligible for the Scheme? 23
6. Other Scheme features & important informaon 25
7. Checklists – Your Eligibility Checks 30
8. Glossary 32
About this document
This document is dated 1 July 2020 and
relates to the Australian Government’s First
Home Loan Deposit Scheme (the Scheme).
It has been prepared by
the National Housing
Finance and Investment Corporaon (or
NHFIC) for Parcipang Lenders so that they
can provide general informaon and guidance
on the Scheme to rst home buyers.
Some terms used in this document have
dened meanings. These terms are
capitalised and are dened in the ‘Glossary’
secon on page 33.
Distribuon of this document
This document may only be distributed within
Australia and in relaon to Eligible Loans that
are oered by Parcipang Lenders.
If you are receiving this document, it will
have been provided to you by a Parcipang
Lender (or by one of their Representaves).
Providing your personal
informaon to NHFIC
You will be asked to provide personal
informaon to NHFIC (directly or via a
Parcipang Lender or its Representaves) if
you take steps to parcipate in the Scheme
or submit a First Home Buyer Declaraon.
Please read the privacy statement at secon
6.4 ‘Other Scheme features & important
informaon – Privacy statement’. By
requesng a Parcipang Lender to take any
steps to have your home loan covered by the
Scheme or by subming a First Home Buyer
Declaraon to your lender you consent to the
maers outlined in that privacy statement.
Providing incorrect or incomplete
informaon
As part of its role in administering and
operang the Scheme, NHFIC may verify
the informaon provided by you (or on your
behalf) in submissions for the Scheme and in
any First Home Buyer Declaraon. This is to
ensure that you are eligible to parcipate in
the Scheme. You may be checked for former
home ownership within Australia and checks
for other maers in respect of the eligibility
criteria – such as your spouse or de facto
partner status (if applicable), council records,
property tle informaon and your nancial
parculars – may also be undertaken.
Not providing the informaon requested
or providing incorrect or incomplete
informaon may impact upon the
assessment of your eligibility and ability to
parcipate in the Scheme.
If it is found that you have provided false,
incorrect or misleading informaon under a
First Home Buyer Declaraon and/or generally
in connecon with the Scheme, criminal and
civil penales may apply. Also, if a guarantee
of your home loan is found to have been
issued erroneously under the Scheme due
to your fraudulent or wilful conduct, that
guarantee may be revoked and the lender
may also consider it as a failure by you to
comply with the terms of your home loan.
If you fail to comply with the terms and
condions of your home loan, the lender
will have rights against you – these rights
may include requiring you to repay some or
all of the home loan, requiring you to pay
for lenders mortgage insurance, an ability to
change or enforce the home loan and/or to
take other legal acon against you.
General informaon and guidance
only
This document includes general informaon
and guidance in relaon to some of the
features of the Scheme only. It should not
be relied upon as being complete or for
any purpose.
NHFIC is only providing this document to
Parcipang Lenders. To the fullest extent
provided by law, this document does not
create any legal relaonship between any
other person and NHFIC.
The informaon in this document is not
nancial or other advice. It has been
prepared without considering any person’s
objecves, nancial situaon or parcular
needs. This document does not relate to
any products or services provided by any
Parcipang Lender. The appointment of any
person as a Parcipang Lender is expressly
not a recommendaon or statement of
opinion for any such person.
It is important that you read this document
and all of the materials provided to you
by your lender in full, and take your own
professional advice as appropriate, before
deciding to take any steps to have your home
loan covered by the Scheme or subming a
First Home Buyer Declaraon.
No independent vericaon
No Parcipang Lender or Representave
has independently veried any informaon
contained in this document and each such
person disclaims any responsibility for that
informaon. No representaon, warranty
or undertaking (express or implied) is
made, and no responsibility or liability is
accepted, by any of them, in relaon to the
accuracy or completeness of the informaon
in this document.
Enquiries & further informaon
If you have any quesons about the Scheme,
you should ask your Parcipang Lender and/
or seek advice from a professional adviser.
Further informaon on the Scheme is also
available on the Scheme Webpage at www.
nhc.gov.au/what-we-do/lds/.
Important informaon
4 | First Home Loan Deposit Scheme
First Home Loan Deposit Scheme | 5
1. How the Scheme
works
The Scheme is an Australian Government iniave aimed at
assisng Australians to purchase their rst home. Under the
Scheme, part of an eligible rst home buyer’s home loan
from a Parcipang Lender will be guaranteed by NHFIC.
This is aimed at enabling the rst home buyer to purchase
their rst home sooner with as lile as a 5% deposit.
1.1 Is your home loan eligible for the Scheme?
For your home loan to be eligible for the Scheme, there are a few checks that
need to be sased.
They relate to:
• your personal circumstances – referred to as Your Eligibility Checks,
which include checks for your income, prior property ownership,
cizenship, age, deposit and intenon to live in the property you
buy – see secon 2 ‘Are you an eligible rst home buyer?’ and the
checklists in secon 7 ‘Checklists – Your Eligibility Checks’
• the lender for your home loan – which must be a Parcipang
Lender – see secon 3 ‘Is your lender approved for the Scheme?’
• the type of home loan you are applying for – which must be an
Eligible Loan – see secon 4 ‘Which home loans are eligible for the
Scheme?’, and
• the property you intend to purchase – which must be an Eligible
Property – see secon 5 ‘Which properes are eligible for the Scheme?’.
If any one of these checks is not sased, you will not be able to parcipate
in the Scheme. Your lender will need to be sased that these checks are
met and will have separate criteria, processes and requirements for any
consideraon of your home loan applicaon with them.
The Scheme is open across Australia to all eligible home loans. The number of
places under the Scheme is limited and a place may not be available even if
your home loan is eligible. See secon 1.2 ‘Other key features of the Scheme –
Scheme place limits’ below for further details.
6 | First Home Loan Deposit Scheme
1.2 Other key features of the Scheme
The Scheme involves the following key features.
When the Scheme
commences
The Scheme commenced on 1 January 2020.
Applicaons to a Parcipang Lender to have your home loan
covered by the Scheme can only be made on or aer that date.
Other relevant dates for Scheme eligibility – such as when contracts
are able to be signed and the selement date for your loan – are
described in secon 4.2 ‘Which home loans are eligible for the
Scheme? – Home loan products – Contract & selement dates’.
Parcipaon in the
Scheme
You cannot apply to NHFIC directly to have your home loan
parcipate in the Scheme. You can only do so as part of your home
loan applicaon with a Parcipang Lender.
The eligibility of your home loan to parcipate in the Scheme will be
considered by your lender and, if eligible, the lender will nofy you
that your home loan is able to parcipate in the Scheme. They may
also take steps to make a Scheme Place Reservaon – as described
in secon 6.1 ‘Other Scheme features & important informaon –
Scheme Place Reservaons’.
Informaon on how your home loan can be covered by the
Scheme can be obtained through a Parcipang Lender and their
Representaves.
Scheme place limits
Up to 10,000 home loans can be guaranteed under the Scheme in
any financial year (ending 30 June).
1 Juy 2020 10000 l l u
ll
1 July 2020 0 Ju 2021 l 10000 l u
ll ll y l y
l l y ll
ul l u The release of places in future
financial years will be announced by NHFIC at a later time.
Issue of guarantees
under the Scheme
If your home loan is covered by the Scheme, NHFIC will issue a
guarantee to the Parcipang Lender who made that loan to you.
The guarantee is not a cash payment or a deposit for your
home loan.
Rather, the guarantee is a legal arrangement between NHFIC and
your lender to pay up to a certain amount that you owe to your
lender if you default under the terms of your home loan and your
property has been sold (as further described below).
A guarantee issued under the Scheme is not made to you, and you
are not able to take any acon in relaon to a guarantee of your
home loan under the Scheme (if one applies).
First Home Loan Deposit Scheme | 7
What a guarantee
covers
Any guarantee of your home loan is for payment of up to a
maximum amount of 15% of the Value (as assessed by your lender)
of the property that you purchase if you default on your home
loan and aer your property is sold. However, it will be for a lesser
amount than 15% of that assessed Value if your deposit is more
than 5% of that Value.
The guarantee is only able to be claimed by the Parcipang Lender
for amounts owing by you to them under your home loan aer:
• you have defaulted on your home loan
• your property has been sold, and
• the sale proceeds (and any other amounts available to the
lender) have been applied to pay the amounts you owe to your
lender under the terms of your home loan.
Specically, any guarantee of your home loan under the Scheme
will not apply to:
• help you make any payments on your home loan that you miss
during the ordinary course of your home loan
• prevent you from defaulng on your home loan
• stop the lender from taking acon against you for any default
under your home loan or mortgage (including where they have
rights to take possession of the property), or
• cover the payment of any amounts which remain to be owed
by you to the lender aer (1) sale proceeds and other amounts
are applied to pay what you owe on your home loan and aer
amounts under the guarantee have been claimed and paid to
the Parcipang Lender, or (2) if they do not make a claim under
the guarantee.
Circumstances where
your home loan may
cease parcipang in
the Scheme
If your home loan is covered by the Scheme, there are certain
events which may cause a Scheme guarantee to stop applying to
your home loan. These include where:
• it is found at any me that your home loan was not eligible to
parcipate in the Scheme– including where it is discovered at a
later me that Your Eligibility Checks were not sased
• you no longer live in the property
• you have repaid your home loan in full – including where you
renance your home loan with another lender that is not a
Parcipang Lender – see secon 6.3 ‘Other Scheme features &
important informaon – Renancing your Scheme-guaranteed
home loan’ for further details, and
• you have repaid your loan down to a principal balance that is
80% or less of the Value of your property – this is calculated
based on your scheduled home loan repayments and amounts
held in an oset account or that you prepay and can freely
redraw are not counted.
8 | First Home Loan Deposit Scheme
There are also addional events that rely upon your agreements with,
and the acons of, your Parcipang Lender. These include where:
• the terms of your home loan (or mortgage) are changed by your
lender except for changes to the interest rate, changes made
to the terms that your lender oers to all of its owner-occupied
home loans, changes for where you are in nancial hardship,
changes between your lender’s standard home loan products
and other limited circumstances
• further nance is provided to you by your lender and secured
against the same property (known as a ‘top up’)
• your loan is assigned or transferred by your lender, or
• if your lender noes NHFIC that the guarantee may be released.
If your home loan is no longer covered by the Scheme at an
earlier me than your lender expected, you may be subject to
addional fees, charges and expenses as set out in the terms
of your home loan.
Other government
Schemes
If your home loan is covered by the Scheme, you are not restricted
un
der the terms of the Scheme from also accessing other government
programs – like the Australian Government’s First Home Super Saver
Scheme ul or first home owner grants and
concessions that may be offered by State and Territory governments.
These other programs apply their own criteria and conditions, and
your eligibility or participation under the Scheme does not mean that
you will definitely be eligible and able to participate under another
program. You should make your own enquiries on the terms of those
other programs.
1.3 Geng ready – what will I need to provide to my lender?
Your Parcipang Lender or their Representave will let you know what informaon and materials you will
need to provide for your home loan applicaon and any parcipaon of your home loan under the Scheme.
However, the following informaon will need to be submied by your lender in connecon with the
inial Scheme Place Reservaon process. It is recommended that you collect and have this informaon
available when you rst contact your lender (directly or through their Representave):
9 your full name and date of birth
9 your Medicare number (including your position on your card)
9 your Notice of Assessment for your taxable income for the 201-20 income year – see section
2.1.2 ‘Are you an eligible first home buyer? – What was your taxable income for the preceding
income year? (Income test)’, and
9 other details to assist the lender to assess whether you will be eligible to participate in the
Scheme – your lender will confirm what these are.
If you do not have a Medicare number, or have not been issued with a Noce of Assessment for your
taxable income (because you did not earn taxable income above the tax-free threshold), your lender will
conrm what other informaon will be required to be provided by you in your circumstances.
First Home Loan Deposit Scheme | 9
2. Are you an eligible
rst home buyer?
2.1 Your Eligibility Checks
First, you should consider whether your personal circumstances sasfy all of
the following checks. They relate to your eligibility as a rst home buyer who
can parcipate in the Scheme.
The key checks for your personal circumstances are:
9 an income test – see secon 2.1.2
9 a prior property ownership test – see secon 2.1.3
9 a cizenship test – see secon 2.1.4
9 a minimum age test – see secon 2.1.5
9 a deposit requirement – see secon 2.1.6, and
9 an owner-occupier requirement – see secon 2.1.7.
Some of these checks may be dierent depending on whether you are
applying for a home loan as a single or as part of a couple.
If you do not sasfy any one of these checks – which are described in
further detail below and are together referred to as Your Eligibility Checks
– you should not ask your lender to take any steps to have your home loan
parcipate in the Scheme. This includes that you should not ask your lender
to make a Scheme Place Reservaon. If you are unsure of any of these
maers, you should ask your lender or seek your own independent nancial
and legal advice.
Secon 7 ‘Checklists – Your Eligibility Checks’ includes checklists that are
provided to help you to record your answers as you consider the quesons
for each of Your Eligibility Checks.
10 | First Home Loan Deposit Scheme
2.1.1 Are you purchasing your rst home on your own or with
another person?
The Scheme is open to singles or couples.
You will only be able to parcipate as a single or as part of a couple – it is not possible for a guarantee
u
nder the Scheme to apply to more than one home loan arrangement involving you.
Singles
If you are looking to purchase your rst home as the only person named as a borrower in your home
loan, then you would apply under the Scheme as a single.
This means that you need to sasfy each of the checks by reference to your own circumstances. Maers
for couples (such as the combined income test) will not apply to you.
Couples
If you are looking to purchase your rst home with your spouse or de facto partner, where you are both
named as borrowers in your home loan, then you would both apply under the Scheme as a couple.
This means that you need to sasfy each of the checks by reference to your combined circumstances
and apply together. Maers for singles (such as the individual income test) will not apply to you.
If you are unsure of whether your relationship with another person is as de facto partners (under
Autralian law), you should ask your lender or seek your own professional advice.
Arrangements with other people that do not qualify
If you are intending to enter into a home loan that:
• has 2 borrowers, but the other person is not also your spouse or de facto partner, or
• has 3 or more borrowers, even if one of the other borrowers is also your spouse or de facto partner,
then that home loan will not be eligible for the Scheme.
For example, a loan arrangement with a relave – such as with a sibling – will not be eligible for the
Scheme.
Questions to ask yourself
Q. Will you be applying under the Scheme as a single or as part of a couple?
As a single
If your answer is ‘as a single’, then you should pay close aenon to the checks that apply for
singles and disregard the maers that apply for couples.
As part of a couple
If your answer is ‘as part of a couple’, then:
• you will need to be able to provide evidence to your lender that conrms your relaonship
• you will need to apply for a home loan together, and
• you should pay close aenon to the checks that apply for couples and disregard the maers that
apply only for singles.
First Home Loan Deposit Scheme | 11
2.1.2 What was your taxable income for the preceding income
year? (Income test)
The Scheme includes an income test.
To sasfy this test:
• for singles – your taxable income for the previous income year must not be more than $125,000, or
• for couples – your combined taxable income for the previous income year must not be more than $200,000.
For all Scheme place applications made from 1 July 2020 up to 30 June 2021, the relevant income year will
be the 201-20 income year. Income years before then are not able to be considered for the income test.
The income test is assessed by your lender:
• at your Home Loan Date, and
• using your taxable income (as per the Income Tax Assessment Act) from the previous income year, as
shown on your Noce of Assessment (issued to you by the Australian Taxaon Oce).
Each income year starts on 1 July in a calendar year and ends on 30 June in the next calendar year –
so if you enter into a home loan agreement with your lender from 1 July 2020 to 30 June 2021, you
would need to be able to provide your income tax assessment notice for the 201-20 financial year.
If you are applying under the Scheme:
• ‘as a single’, then you will need to sasfy the income test for singles, or
• ‘as part of a couple’, then together you will need to sasfy the combined income test for couples.
This will be the only income test you need to sasfy – so you can disregard the income test for singles
– and you will need to be able to show your lender copies of a Noce of Assessment for each of you
and your spouse or de facto partner.
Questions to ask yourself
Q1. Do you have your Notice of Assessment for the 2019-20 income year (as issued by the
Australian Taxation Office)?
No, I don’t have it (or I can’t find it)
If your answer to the above queson is ‘no’, you may not be able to sasfy the income test.
You would need to take steps to file for or obtain a copy of your Notice of Assessment for the
201-20 income year. Doing so does not necessarily qualify you as being able to participate in the
Scheme, and any acon you decide to take is your own responsibility.
If you did not receive a Noce of Assessment because your taxable income is below the tax-free
threshold in the relevant income year, you will need to conrm with your lender what informaon
you would need to provide.
Yes, I do
If your answer is ‘yes’ to the above queson, you will need to be able to show a copy of your Noce
of Assessment to your lender.
The next queson for you is below.
Q2. Do you sasfy the income test?
No, I / we don’t sasfy the income test
If your answer to the above queson is ‘no’, your home loan will not be eligible under the Scheme.
Yes, I / we sasfy the income test
If your answer is ‘yes’ to the above queson, your home loan may be eligible for the Scheme.
12 | First Home Loan Deposit Scheme
2.1.3 Have you ever held an interest in property in Australia?
(Prior property ownership test)
It is important that the Scheme assists genuine rst home buyers.
The prior property ownership test for you being an eligible rst home buyer for the Scheme is that you
have not ever held:
• a freehold interest in real property in Australia
• an interest in a lease of land in Australia with a term of 50 years (or more), or
• a company tle interest in land in Australia.
These tests apply for property interests in all States and Territories of Australia, regardless of whether
the property was residenal or commercial property, for investment or owner-occupied purposes and
whether or not it was ever lived in.
They also apply to you whether or not any of the interests listed above have been held by you on your
own or together with someone else – for example, where you held an interest in property with a former
spouse or de facto partner.
What this means is that, if you are applying under the Scheme:
• ‘as a single’, then only you, individually, will need to sasfy the prior property ownership test, or
• ‘as part of a couple’, then you will both need to sasfy the prior property ownership test.
Note that if either of you – whether individually or with someone else – have held any of the
interests listed in the test, you do not sasfy the prior property ownership test as a couple.
For your home loan to parcipate in the Scheme, you will need to make a statutory declaraon that
conrms you have not held any interests of this kind. This declaraon is made under the First Home
Buyer Declaraon.
In addion, your lender, NHFIC and others may conduct independent checks on whether or not you have held
any such interests in Australia at any me. They may do this at any me – including aer you have signed a
contract for sale or paid a deposit in relaon to a property and aer your home loan has been advanced.
If you are unsure of whether or not you have held any of the kinds of interests listed above you should
ask a professional adviser, as you will need to be sure that you are not giving a false declaraon.
Quesons to ask yourself
Q3. Will you sasfy the prior property ownership test at your Home Loan Date?
You should check this against each of the three types of property interest holdings that could
restrict you from being eligible.
For couples, the answer for both you and your spouse or de facto partner are to be considered.
No, I have held an interest in property
If your answer to the above queson is ‘no’, you will not be able to sasfy the prior property
ownership test.
Your home loan – as a single or as part of a couple – will not be eligible to parcipate under the
Scheme.
Yes, I do, because I haven’t ever held an interest in property (and, for couples, neither has my
spouse or de facto partner)
If your answer to the above queson is ‘yes’, you will be able to make the necessary declaraons
and sasfy the prior property ownership test.
First Home Loan Deposit Scheme | 13
2.1.4 Are you an Australian cizen? (Cizenship test)
The Scheme is only open to Australian cizens.
The cizenship test for the Scheme is that you will need to be an Australian cizen at your Home Loan Date.
If you are applying under the Scheme:
• ‘as a single’, then only you, individually, will need to satisfy the citizenship test, or
• ‘as part of a couple’, then you will both need to satisfy the citizenship test.
You will not satisfy the citizenship if at the Home Loan Date:
• you are a permanent resident of Australia or a New Zealand citizen (and not an Australian citizen)
• you are the spouse or de facto partner of an Australian citizen, but are not yourself an Australian citizen
• you were formerly an Australian citizen, but have not resumed your citizenship, or
• you have applied for, are eligible for, or have received notice of a positive decision of Australian
citizenship, but have yu y received your citizenship certificate.
Questions to ask yourself
Q4. Will you be an Australian citizen at your Home Loan Date?
For couples, the answer for both you and your spouse or de facto partner are to be considered.
No, I will not be
If your answer to the above question is ‘no’, you will not be able to satisfy the citizenship test.
Your home loan – as a single or as part of a couple – will not be eligible to participate under the
Scheme.
Yes, I will be (and, for couples, so will my spouse or de facto partner)
If your answer to the above question is ‘yes’, you will be able to make the necessary declarations and
satisfy the citizenship test.
2.1.5 Are you 18 years or older? (Minimum age test)
The Scheme is only open to persons that are 18 years of age or over.
The minimum age test for the Scheme is that you will need to be 18 years of age or over at your Home
Loan Date.
If you are applying under the Scheme:
• ‘as a single’, then only you, individually, will need to sasfy the minimum age test, or
• ‘as part of a couple’, then you will both need to sasfy the minimum age test.
Quesons to ask yourself
Q5. Will you be 18 years or over at your Home Loan Date?
For couples, the answer must be ‘yes’ for both of you.
No, I will not be
If your answer to the above queson is ‘no’, you will not be able to sasfy the minimum age test.
Your home loan – as a single or as part of a couple – will not be eligible to parcipate under the Scheme.
Yes, I will be
If your answer to the above queson is ‘yes’, you will be able to make the necessary declaraons
and sasfy the minimum age test.
14 | First Home Loan Deposit Scheme
2.1.6 Do you have a deposit of at least 5% of the value of the
property (but less than 20%)? (Deposit requirement)
There is a minimum and maximum deposit requirement for the Scheme. Your Participating Lender will be
able to tell you if you satisfy this requirement.
The Scheme is to assist singles and couples (together) who have at least 5% of the Value of an eligible
property saved as a deposit. It is a requirement of the Scheme that you are to use the maximum amount
of your savings as possible towards your deposit (subject to the policies of your lender). If you have 20%
or more saved, then your home loan will not be covered by the Scheme.
As the Scheme is aimed at helping first home buyers who have these features, it is important that
you do
not try and
disadvantage other Australians by seeking to change your circumstances just to take
advantage of the Scheme. This includes where you have a 20% or greater deposit and legally transfer your
cash and other assets in order only to access the Scheme or where your 5% deposit has not been
genuinely saved by you and is being provided to you only so that you can qualify for the Scheme.
u ul yu y u ul
y yu y
u y
Questions to ask yourself
Q6. Do you have a deposit of between 5% and 20% of the value of the property you would
like to purchase?
For couples, your answer should refer to your combined circumstances.
No, I won’t – I’ll have less than the 5% minimum or 20% maximum or more
If your answer to the above question is ‘no’, you will not be able to satisfy the deposit
requirement. Your home loan – as a single or as part of a couple – will not be eligible to participate
under the Scheme.
Yes, I do or will (and, for couples, this is together with my spouse or de facto partner)
If your answer to the above question is ‘yes’, you will be able to make the necessary declarations
and satisfy the deposit requirement.
2.1.7 Will you live in the property you purchase as an
owner-occupier? (Owner-occupier requirement)
The Scheme will assist Australians to purchase their first home. Investment properties are not
being supported by the Scheme.
Under your First Home Buyer Declaration, you will need to represent that you intend to:
• start living in the Eligible Property you purchase within 6 months from either the date of purchase
or, for new builds, the date an occupancy certificate is issued, and
• continue to live in that property for as long as your home loan has a guarantee under the Scheme. If
you are applying under the Scheme:
• ‘
as a single’, then only you, individually, will need to satisfy the owner-occupier requirement, or
• ‘as part of a couple’, then you will both need to satisfy the owner-occupier requirement.
If you don’t live in your property – including where you move out of the property at a later time –
your home loan may cease to be guaranteed by the Scheme.
In these circumstances there may be terms of your home loan that require you to take certain acons
– including that you may need to pay fees and charges and/or take out lenders mortgage insurance that
would not have otherwise applied if your home loan was parcipang under the Scheme.
First Home Loan Deposit Scheme | 15
Quesons to ask yourself
Q7. Do you intend to reside in the property you purchase as an owner-occupier while your
home loan is guaranteed under the Scheme?
No, I don’t (or I don’t think I will)
If your answer to the above queson is ‘no’, you will not be able to sasfy the owner-occupier
requirement.
Your home loan – as a single or as part of a couple – will not be eligible to parcipate under the Scheme.
Yes, I do intend to live in the property as an owner-occupier
If your answer to the above queson is ‘yes’, you will be able to make the necessary declaraons
and sasfy the owner-occupier requirement.
For couples, the answer must be ‘yes’ for both of you.
2.1.8 Are there any maers that could disqualify you from being
an eligible rst home buyer?
This is a nal check to make sure that you don’t provide any incorrect, untrue or misleading informaon
nor make any false declaraons in relaon to your personal circumstances. It is not an addional criteria,
and is included only to make sure you have considered all possible maers and are aware of the possible
consequences for providing untrue, incorrect, misleading or false informaon or materials.
You should consider all of the above checks carefully. If you are unsure of any maer relang to
your circumstances, or (for couples) those of your spouse or de facto partner, you should speak to
your lender and/or ask your professional adviser(s).
If your Parcipang Lender takes any acon for your home loan to be covered by the Scheme – including
making Scheme Place Reservaons or seeking to have a guarantee apply for your home loan – you will
need to provide informaon to them and make declaraons.
This informaon and declaraons you make may be invesgated at future mes. You need to be certain
that you are giving true and correct informaon and declaraons.
If your informaon and/or declaraons are found to be untrue, incorrect, misleading or false –
including at a later me aer you have paid a deposit or the full purchase price on your property –
there may be signicant consequences.
These may include that:
• legal acon is taken against you – including for criminal penales and civil acons
• your home loan is not covered by the Scheme, and/or
• there are terms of your home loan that require you to take certain acons – including you may need
to pay fees and charges and/or take out lenders mortgage insurance that would not have otherwise
applied if your home load was covered by the Scheme.
You should understand the terms of your home loan carefully so that you know what would happen
under your home loan if this were to happen.
16 | First Home Loan Deposit Scheme
Quesons to ask yourself
Q8. Are you sure there are no maers in your personal circumstances that could mean you
aren’t eligible for the Scheme?
No, I’m not sure
If your answer to the above queson is ‘no’, you could risk signicant consequences if you give
incorrect, untrue or misleading informaon or make false declaraons.
You should speak to your lender and/or ask your independent nancial and/or legal adviser(s).
Yes, I am sure
If your answer to the above queson is ‘yes’, you will be able to make the necessary declaraons
and sasfy the rst home buyer test.
You should note that all informaon and declaraons provided by you are able to be
invesgated at any me.
First Home Loan Deposit Scheme | 17
3. Is your lender
approved for the
Scheme?
3.1 Participating Lenders
The Scheme is only open to Eligible Loans that are made by Participating
Lenders. For a lender to be a Participating Lender under the Scheme, they
must have been approved by NHFIC.
A listing of these lenders is on the Scheme ebpage u
l Even if you are told that a particular institution is a
Participating Lender, you should check that they are listed on the Scheme
ebpage ul.
Participating Lenders may offer Eligible Loans themselves or via
Representatives. If you are unsure whether any institution or person is a
Representative of a Participating Lender, you should contact the lender
directly to ask.
3.2 Your home loan application and your
relationship with your lender
You are able to apply for finance for your home loan from more than one
Participating Lender. The terms of your home loan will be agreed between
you and your lender.
NHFIC will not be involved in any home loan applicaon procedures,
assessments or approvals nor the administraon or management of
your home loan (including in circumstances of default and enforcement).
These are maers for you and your lender.
See secon 4 ‘Which home loans are eligible for the Scheme?’ for further
details on which home loans qualify as Eligible Loans.
3.3 What if I have a complaint about my
lender?
General complaints about your lender should be made to your lender and/or
any relevant complaints authority.
18 | First Home Loan Deposit Scheme
First Home Loan Deposit Scheme | 19
4. Which home loans
are eligible for the
Scheme?
4.1 Eligible Loans
Not all home loans are eligible for the Scheme.
The Scheme is restricted to ‘Eligible Loans’, which are home loans:
• made by Parcipang Lenders to singles or couples who are eligible rst
home buyers, and
• that are for the purchase of an Eligible Property that is to be occupied
by you as the owner – see secon 5 ‘Which properes are eligible for the
Scheme?’ for further informaon.
There are addional requirements that apply in relaon to these home
loans that rely upon the terms that you agree with your Parcipang Lender.
These include that your home loan will need to be for a term of 30 years
or less, have regular repayments of principal (with limited excepons for
interest-only loans, which mainly relate to construcon lending), include
a mortgage over your purchased property, be in Australian dollars, have
appropriate lending limits to recognise the Scheme’s deposit requirements,
sele aer your lender commences as a Parcipang Lender under the
Scheme and comply with relevant laws and your lender’s own policies. Your
Parcipang Lender will need to ensure that the terms of your home loan
arrangement comply with these maers.
4.2 Home loan products
The Scheme permits certain categories of home loan products to be oered
to take the benet of the Scheme. These general categories relate to home
loans for:
• the purchase of an established dwelling
• a house and land package
• a land and separate contract to build a home, and
• an ‘o-the-plan’ purchase.
yu uy l u ll
l yu ll ul ul
l l l
yu ly l l
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u yu y y
u ll yu l ly yu l
ll u
20 | First Home Loan Deposit Scheme
The condions under the Scheme for home loan product categories that may be Eligible Loans are as follows.
Contract &
selement dates
To be eligible for the Scheme l ll
ll ul y ul y
y yu ll u l
u
Purchase of exisng
dwelling
If you are purchasing an exisng dwelling:
• you must move into the property within 6 months of the
settlement of your home loan, and
• the property must be purchased under a contract of sale
on or after 1 January 2020.
This category does not include ‘o-the-plan’ purchases, which are
described below.
House and land
packages
A house and land package is where you build a home by entering
into a contract of sale to purchase land from the same (or
within the same corporate group) as the you
enter into a contract with to build your home.
For a house and land package, prior to the settlement date for your
home loan you will need to have entered into:
• a contract of sale for the land; and
• an eligible building contract to build your home on that land.
These can either be in the same contract or two separate contracts
u l ll l lu u yu
You will also need to move into the property within 6 months of an
occupancy certificate being issued.
Land and separate
contract to build a
home
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• ul yu 12 ; and
• ul yu 2
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l yu l
First Home Loan Deposit Scheme | 21
‘O-the-plan’
purchases
If you are making an ‘o-the-plan’ purchase:
• you must have signed the contract of sale before the selement
date for your home loan, and
• the selement date for your home loan must occur within 90 days
that your home loan becomes guaranteed under the Scheme.
You will also need to move into the property within 6 months of the
selement date for your home loan.
Eligible building
contracts
For a building contract to be eligible under the Scheme, it must:
• be with a licensed or registered builder
• specify a fixed price for the construction of the dwelling
‘Owner builder’ contracts are not eligible building contracts for
the Scheme.
Parcipang Lenders may, or may not, oer these types of home loan products. Even if they do
oer these products, the terms of the home loan may be more limited than described above. You
should contact your lender and/or ask your professional adviser(s) about the home loan products
that are oered and whether they suit the purchase you are intending to make.
u y l l uy l
l ul yu yu
yu ll u yu
• ll ul
• ul yu 12
• ul yu 2
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22 | First Home Loan Deposit Scheme
First Home Loan Deposit Scheme | 23
5. Which properes are
eligible for the Scheme?
5.1 Eligible Properties
Not all properties are eligible for the Scheme.
The key eligibility checks for any property that you want to purchase are that:
• it is a ‘residential property’ – under the Scheme this term has the same
meaning as under the National Consumer Credit Protection Act, and you
should ask your lender if there is any doubt
• the purchase price of the property is under the price cap for its location –
see section 5.2 ‘Property price caps’
• the property is (1) an established dwelling, or (2) a new-build dwelling that
you purchase 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 – see section 4 ‘Which home loans are eligible for the Scheme?’
for further details, and
• at the settlement date for your home loan, each borrower will be the sole
registered owner of the property.
5.2 Property price caps
The price caps are summarised in the tables below. Your lender will be able to
confirm which price cap is applicable to your property by its street address and
suburb. If the purchase price ul l
ul u u for your
property is more than the price cap for its location (as listed below), the
property will not be eligible for the Scheme.
State Capital city & regional centres* Rest of State
New South Wales $700,000 $450,000
Victoria $600,000 $375,000
Queensland $475,000 $400,000
Western Australia $400,000 $300,000
South Australia $400,000 $250,000
Tasmania $400,000 $300,000
Territory All areas
Australian Capital Territory $500,000
Northern Territory $375,000
Jervis Bay Territory & Norfolk Island $450,000
Christmas Island & Cocos (Keeling) Islands $300,000
Note that regional centres only include the areas identified as (1) in New
South Wales, Illawarra and Newcastle and Lake Macquarie, (2) in Victoria,
Geelong, and (3) in Queensland, Gold Coast and Sunshine Coast.
A postcode look-up tool is available on the Scheme ebpage
ul for general information. You are able to
use this tool to get an idea of whether a property is in a particular price cap
area. However, you should not rely upon the information provided by the
tool and must confirm the price cap for any property you are thinking
about purchasing with your lender.
24 | First Home Loan Deposit Scheme
First Home Loan Deposit Scheme | 25
6. Other Scheme
features & important
informaon
6.1 Scheme Place Reservaons
Depending upon your circumstances, your Parcipang Lender may be able
to reserve a place under the Scheme in conjuncon with you making your
home loan applicaon. Requests for Scheme Place Reservaons can only be
made by Parcipang Lenders.
A Scheme Place Reservaon does not guarantee that your home loan will
parcipate in the Scheme. There are other checks and ming requirements
that apply before your home loan is able to be guaranteed under the Scheme.
If your Parcipang Lender elects to reserve a place under the Scheme in
conjuncon with you making your home loan applicaon, the following
steps apply.
26 | First Home Loan Deposit Scheme
Your inial home loan
applicaon
You will be able to make a Scheme Place Reservaon for up to 14
days while your lender assesses your nance applicaon.
This reservaon:
• is made by a Participating Lender at the same time as your home
loan application is made or is being assessed, and you will need to
provide them with some personal information to get this to
happen – see section 1.3 ‘Getting ready – what will I need to
provide to my lender?’
• is for uully 1 y u yu l ll yu
from when it is first made by any Participating
Lender – you can make home loan applications to more than one
Participating Lender in this period, but the 14-day reservation is
counted from the day when the first lender makes the reservation
–see Scenario 1 below for an illustration of how this works
• will be able to be extended by your lender if finance pre-approval is
given for your home loan – see ‘Getting finance pre-approval’
below, and
• will expire if (1) you are not pre-approved for finance from a
Participating Lender during this period, or (2) if you are pre-
approved for finance and your lender does not let NHFIC know to
extend the reservation by the end of the 14-day period.
If a Scheme Place Reservaon is made for you as a single,
then you will not be able to make a separate Scheme Place
Reservaon as part of a couple (and vice versa).
Scenario 1 – initial reservation
Annabel makes a home loan inquiry with Lender A on
2020, and Lender A makes an initial Scheme Place Reservation
on that date. The reservation period for Annabel and her
home loan is open for 14 days and will expire at 11.59 pm
(Sydney time) on 2020. This will be the expiry time for
all Scheme Place Reservations that are submitted for
Annabel’s home loan applications by Participating Lenders in
that reservation period.
She also makes another home loan application with Lender
B on 2020 and Lender B makes another initial Scheme
Place Reservation on that date. The reservation period for
Annabel and her home loan is already open and so Lender B
has days to take necessary actions before the period
expires.
For the reservation to be extended (see ‘Getting finance pre-
approval’ below), Lender A or Lender B will need to provide
finance pre-approval to Annabel and take the necessary
action to extend the reservation before the expiry time of
11.59 pm (Sydney time) on y 2020.
First Home Loan Deposit Scheme | 27
Geng nance pre-
approval
If your lender has given you a nance pre-approval, your Scheme
Place Reservaon can be extended for a further 90 days (starng
on the rst date that it is extended by a Parcipang Lender) – see
Scenario 2 below for a further illustraon of how this works.
This further reservaon period is to allow you to nd and sign a
contract of sale for an Eligible Property that you want to buy.
If during this 90-day reservaon period:
• you are unable to nd an Eligible Property that you want to buy,
or
• your lender withdraws your nance pre-approval or believes
that you are not likely to enter into a home loan for an Eligible
Property,
the Scheme Place Reservaon for your home loan will expire.
Scenario 2 – pre-approval reservaon
In considering Annabel’s home loan application, Lender A
provides her with a finance pre-approval on 2020 and
takes the necessary steps to extend the Scheme Place
Reservation for her home loan on that date. The Scheme
Place Reservation is then extended by 90 days from the day
that Lender A takes those steps. This extension will apply for
both Lender A and Lender B, to now expire at 11.59 pm on
1 2020.
Lender B does not provide Annabel with pre-approval before
the
expiry me for the inial reservaon but because Lender
A has extended your Scheme Place Reservation, Lender B will
have until 11.59 pm on 2020 to provide Annabel
with finance pre-approval.
Signing your contract
for sale
Once you have signed a contract for sale to purchase an Eligible
Property, your Scheme Place Reservaon can be extended for an
addional 30 days from the signing date.
This addional period is to enable you and your lender to nalise
the paperwork and checks for your home loan. Your lender may ask
you to provide informaon and materials in a shorter period than
the 30 days.
To ensure that this extension applies, you will need to tell your
lender immediately once you have signed your contract for sale so
that your lender can nofy NHFIC.
If you are unable to nalise your loan within this period, the Scheme
Place Reservaon for your home loan will expire.
28 | First Home Loan Deposit Scheme
What happens if a
reservaon expires
If any reservaon period expires without being extended, the
Scheme Place Reservaon for your home loan will lapse and your
Parcipang Lender would need to make a new reservaon under
the Scheme.
With the number of places under the Scheme being limited, it
is likely that there may not be a place under the Scheme that is
available to be reserved or taken up at that later me and you may
need to wait unl the next nancial year to apply for a place.
In all circumstances, the decision to enter into a home loan arrangement with a Parcipang
Lender, and the choice of property to purchase, is your own responsibility. Even though the
availability of the Scheme for home loans is limited – by number of places and the me periods
for the reservaon process – you should seek your own independent nancial and legal advice as
to whether a parcular home loan or property, and the terms of the Scheme, suit your personal
circumstances and objecves.
6.2 First Home Buyer Declaraon
Any First Home Buyer Declaraon is provided to you by a Parcipang Lender for the purposes of them
applying to NHFIC for your home loan to be covered by the Scheme. You must sign and submit your First
Home Buyer Declaraon to your lender in accordance with their instrucons.
NHFIC will not take any acon or steps in relaon to a First Home Buyer Declaraon that is
delivered to it by any person (including you) or instuon that is not a Parcipang Lender (or a
Representave or agent of it).
It is recommended that you provide the completed and signed declaraon to your lender as soon as
possible. A copy of this declaraon will also be provided by your lender to NHFIC, who will retain the
copy as a record.
You should be aware that this form is separate to (1) your applicaon for a home loan from your
lender, and (2) any forms that you are required to submit in relaon to any other rst home buyer
schemes or programs.
Before compleng a First Home Buyer Declaraon, you should carefully read all secons and informaon
contained in the form and ask your lender and/or your professional adviser(s) if anything is unclear.
You must ensure that all informaon contained in your First Home Buyer Declaraon is complete and
correct. If you are unsure about any of your obligaons or informaon that is required as part of any
applicaon for your home loan to be covered by the Scheme, it is important that you contact your lender
for claricaon.
You must nofy your lender if you believe that you cease at any me to meet the eligibility requirements
of the Scheme or if there is any change to the informaon provided in the First Home Buyer Declaraon
aer you have signed and submied it.
Penales may apply for false declaraons.
First Home Loan Deposit Scheme | 29
6.3 Renancing your Scheme-guaranteed home loan
If you have a home loan that is already parcipang under the Scheme, you may be able to renance
your home loan with another Participating Lender and continue to have the benefit of the Scheme.
Any such refinancing is subject to conditions, and you should contact ender for
further details if you are considering refinancing your existing Scheme-guaranteed home loan
It is not possible for your home loan to connue to have the benet of the Scheme if it is renanced
with another lender that is not a Parcipang Lender.
6.4 Privacy statement
Your personal informaon may be used by your lender, NHFIC and/or the Australian Government for the
administraon and operaon of the Scheme and assessing your eligibility under the Scheme.
By requesng a Parcipang Lender to take any steps to have your home loan covered by the Scheme
or by compleng and subming a First Home Buyer Declaraon, you consent to your lender, NHFIC
and/or the Australian Government collecng, using and disclosing your personal informaon for the
abovemenoned purposes and any other incidental or related purpose.
Your lender, NHFIC and/or the Australian Government may disclose your personal informaon to any
party engaged in the assessment or evaluaon of the Scheme.
Your lender, NHFIC and/or the Australian Government will store personal informaon collected through
your home loan applicaon process (including informaon to assess your eligibility under the Scheme),
supporng documents, the loan agreement and any monitoring, research and evaluaon acvies in
compliance with their respecve obligaons under the Privacy Act and any other privacy legislaon
applicable in their jurisdicon.
Your personal informaon will not be disclosed overseas. You may access or correct your personal
informaon at any me by contacng your lender.
Further informaon about your lender’s privacy policy and NHFIC’s privacy policy, including rights
of access and complaints handling, may be accessed at your lender’s website or www.nhc.gov.au
(as applicable).
30 | First Home Loan Deposit Scheme
7. Checklists – Your Eligibility
Checks
The following checklists are to assist you to work through Your Eligibility Checks. You should refer back to
the relevant secons of this document for further informaon on each check.
7.1 Inial check – eligibility as a single or couple
No. Queson
Scheme Guide
secon Your answer
QO. Will you be applying under the Scheme as
a single or as part of a couple (i.e. you and
your spouse or de facto partner are jointly
applying under the Scheme as a couple)?
2.1.1
Single
You should
complete
the checks
for singles at
secon 7.2
Couple
You should
complete the
checks for
couples at
secon 7.3
7.2 Checks for singles
The following checks are applicable for singles. If you answer ‘no’ to any of the quesons, you will not be
eligible to parcipate in the Scheme.
No. Queson
Scheme Guide
secon Your answers
Q1.
Do you have your Notice of Assessment
for the 201-20 income year (as issued by
the Australian Taxation Office) (or did you
earn less than the tax-free threshold)?
2.1.2
Yes No
Q2. Do you sasfy the income test (for singles)? 2.1.2
Yes No
Q3. Will you sasfy the prior property ownership
test at your Home Loan Date?
2.1.3
Yes No
Q4. Will you be an Australian cizen at your
Home Loan Date?
2.1.4
Yes No
Q5. Will you be 18 years or over at your Home
Loan Date?
2.1.5
Yes No
Q6. Do you have a deposit of at least 5% and
less than 20% of the purchase price of the
property you would like to purchase?
2.1.6
Yes No
Q7. Do you intend to reside in the property you
purchase as an owner-occupier while your
home loan is guaranteed under the Scheme?
2.1.7
Yes No
Q8. Are you sure there are no maers in your
personal circumstances that could mean you
aren’t eligible for the Scheme?
2.1.8
Yes No
First Home Loan Deposit Scheme | 31
7.3 Checks for couples
The following checks are applicable for couples.
If either of you answer ‘no’ to any of the quesons, you will not be eligible to parcipate in the Scheme.
No. Queson
Scheme Guide
secon
Your answer
Applicant 1 Applicant 2
Q1.
Do you have your Notice of Assessment
for the 20120 income year (as issued by
the Australian Taxation Office) (or did you
earn less than the tax-free threshold)?
2.1.2
Yes No Yes No
Q2. Do you (together) sasfy the income test
(for couples)?
2.1.2
Yes No Yes No
Q3. Will you sasfy the prior property
ownership test at your Home Loan Date?
2.1.3
Yes No Yes No
Q4. Will you be an Australian cizen at your
Home Loan Date?
2.1.4
Yes No Yes No
Q5. Will you be 18 years or over at your Home
Loan Date?
2.1.5
Yes No Yes No
Q6. Do you (together) have a deposit of at least
5% and less than 20% of the purchase price
of the property you would like to purchase?
2.1.6
Yes No Yes No
Q7. Do you intend to reside in the property
you purchase as an owner-occupier while
your home loan is guaranteed under the
Scheme?
2.1.7
Yes No Yes No
Q8. Are you sure there are no maers in your
personal circumstances (or your spouse
or de facto partner’s circumstances) that
could mean you (or your spouse or de facto
partner) aren’t eligible for the Scheme?
2.1.8
Yes No Yes No
32 | First Home Loan Deposit Scheme
8. Glossary
Eligible Loan A home loan made by a Parcipang Lender that is eligible to
parcipate under the Scheme.
Eligible Property A residenal property that is eligible to parcipate under the Scheme.
First Home Buyer Declaraon The form of statutory declaraon provided to you by your
Parcipang Lender in relaon to the Scheme.
Home Loan Date The date when you sign your home loan agreement with your
Parcipang Lender.
You will need to conrm what this date is with your Parcipang
Lender, as it may dier between you and another rst home buyer
and may be dierent from other lenders and for parcular purposes,
depending upon their procedures for loan approvals and how they
parcipate under the Scheme.
Income Tax Assessment Act Income Tax Assessment Act 1997 (Cth).
Major Bank Lenders Participating Lenders who are listed as ‘Major bank lenders’ on
the Scheme ebpage ul.
NHFIC Naonal Housing Finance and Investment Corporaon.
Naonal Consumer Credit
Protecon Act
Naonal Consumer Credit Protecon Act 2009 (Cth).
Non-Major Lenders Participating Lenders who are listed as ‘Non-major lenders’ on
the Scheme ul
Parcipang Lender
Each eligible lender that has been approved by NHFIC, as listed on the
Scheme ul These
include the Major Bank Lenders and the Non-Major Lenders.
Privacy Act Privacy Act 1988 (Cth).
Representave For any Parcipang Lender, any third-party broker or other person
that is authorised by the Parcipang Lender to suggest that
Eligible Borrowers may apply for, or to assist Eligible Borrowers to
apply for, Eligible Loans with the Parcipang Lender.
Scheme The Australian Government’s First Home Loan Deposit Scheme.
The Scheme is established by NHFIC (in accordance with the Naonal
Housing Finance and Investment Corporaon Act 2018 (Cth) and the
Naonal Housing Finance and Investment Corporaon Investment
Mandate Direcon 2018 (Cth)).
Scheme Webpage
The internet page for the Scheme at www.nhc.gov.au/what-we-do/
lds/
Informaon in relaon to the Scheme that is included on or available
through the Scheme Webpage is general informaon only and it
does not form part of this document.
Scheme Place Reservaon A reservaon for a guarantee to apply for your home loan under
the Scheme.
Value The ‘Value’ of the property you purchase as assessed by the
Parcipang Lender for your home loan in accordance with the
requirements of the Scheme.
LDS 1115 0220
