1
FIRST HOME
LOAN DEPOSIT
SCHEME
Trends & Insights
National Housing
Finance and Investment
Corporation
2
First Home Loan Deposit Scheme
CONTENTS
1. Overview 3
2. Key insights 4
3. Trends and insights of FHLDS 7
4. State and territory analysis 23
About the First Home Loan
Deposit Scheme
The First Home Loan Deposit Scheme
is an Australian Government initiative
to support eligible 
rst home buyers
purchase their rst home sooner.
Under the Scheme, eligible first home
buyers can purchase a home with a
deposit of as little as 5 per cent. This
is because NHFIC guarantees a
Scheme lender up to 15 percent of the
value of the property nanced by an
eligible rst home buyer’s home loan.
10,000 Scheme places were released
to participating lenders from 1 January
2020. An additional 10,000 Scheme
places were released from 1 July for
the 2020-21 nancial year.
Buyers must satisfy certain eligibility
requirements, including that they have
a taxable income under $125,000 if
they are a single applicant ($200,000
for a couple), and that the intended
purchased property is subject to
the property price caps set by the
Australian Government, which differ
across Australia.
In practice, the Scheme operates in
three main stages. First, the lender
reserves a guarantee for the rst
home buyer and the loan is pre-
approved, which allows the buyer
to make their purchase or plan their
build. Second, if the rst home buyer
successfully purchases a property
or enters a building contract, the
guarantee is issued. In the nal
stage, the guarantee is activated
when settlement of the property has
been conrmed.
3
The Scheme is limited to 10,000
guarantees per financial year.
This report provides the rst
detailed snapshot of the FHLDS for
the 
rst six months of its operation,
from 1 January 2020 to 30 June
2020. As at 30 June 2020, 10,000
Scheme places had been allocated.
Of these, 6,814 participants had
either signed a contract or settled
on their home, while the remaining
3,186 were at the loan pre-
approval stage and still looking for
a property.
The Scheme has experienced
strong demand and supported a
broad cross-section of Australians
purchasing their rst home. This
includes people of all ages across
metro and regional areas around
Australia, and those who have
moderate taxable incomes. The
Scheme is also supporting key
workers, such as teachers and
nurses, to access the housing
market sooner.
First Home Loan Deposit Scheme
1.
1. OVERVIEW
Many Austr
alians aspire to own
their own home. Home ownership
provides security of tenure. It is
also an important vehicle for wealth
accumulation, and the largest asset
most Australians hold.
However, buying a home has
become more challenging for some.
For example, in the early 1990s, it
took an average household around
six years to save a 20 per cent
deposit to buy a typical dwelling.
More recently, it takes around nine
to 10 years.
1
Many people can afford to service
a mortgage once they have passed
the initial hurdle of saving a
deposit.
2
On 1 January 2020, the Australian
Government’s First Home Loan
Deposit Scheme (FHLDS
or the Scheme) commenced. The
Scheme provides a guarantee that,
subject to eligibility and lender
credit criteria, rst home buyers can
purchase a home with a deposit of
as little as 5 per cent of the value of
the property.
Grattan Institute, 2018. Housing affordability: re-imagining the Australian dream.
Available at https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf
Reserve Bank of Australia, 2017.
The property ladder after the financial crisis: the first step is a stretch but those who make it are doing OK.
Available at https://www.rba.gov.au/publications/rdp/2017/pdf/rdp2017-05.pdf
2.
4
2. KEY INSIGHTS
The Scheme has helped homeowners
purchase their rst property, acting as
a support mechanism for the rst home
buyer market. It has assisted rst home
buyers across the income, age and
demographic spectrum.
• The Scheme supported one in eight of all
rst home buyers who purchased a home
in Australia between March and June 2020
(the rst four months for which comparable
settlement data was available).
3
• Guarantees for single applicants were
concentrated in the 25-to-34 age range
and in moderate income brackets – those
earning $60,000 to $80,000 – compared to
the $125,000 eligibility income threshold
under the Scheme.
4
• Guarantees for couples were also most
prominent in the 25-to-34 age range, but
at higher income levels – the $90,000 to
$125,000 income bracket – compared
to the $200,000 income threshold for
couples.
5
• Although people accessing the Scheme
were typically younger, more than 10 per
cent were aged over 40.
Australian Bureau of Statistics, Lending Indicators, June 2020, cat. no. 5601.0. The ABS notes that there were uneven COVID-19 effects
on
reported housing loan commitments. A full statement on the impact can be found on the ABS website. Given the Scheme was
implemented on 1 January 2020, and the associated time lag between pre-approval and settlement of a property, the number of properties
settled under the FHLDS could only be accurately benchmarked against the wider first home buyer market over the period stated.
Income data captured under the Scheme is for the 2018–19 financial year. First home buyers’ financial circumstances may have changed
between 30 June 2019 and when the guarantee was issued.
3.
4, 5.
5
The Scheme has broad geographical
reach across all states and territories,
with regional Australia well represented.
• The FHLDS has supported first home
buyers across all states and territories: 62.3
per cent of buyers purchased in major cities
and 37.7 per cent purchased in regional
areas. This is broadly in line with the general
population distribution, with 67.7 per cent
living in major cities and 32.3 per cent in
regional areas.
6
• The geographic distribution of guarantees in
states and territories under the Scheme is
largely in line with the resident population
share
7
, except in Western Australia and
South Australia. Demand in these states,
which have longstanding first home buyer
support initiatives, was lower.
• Demand for the Scheme by postcode was
highest in the
Toowoomba area, in regional
Queensland, with 70 loans guaranteed in
that area. Demand was also strong across
South Western Sydney (Campbelltown
area) and the outer suburbs of Melbourne
(Craigieburn and Frankston).
Buyers supported by the Scheme
preferred detached houses over
apartments or townhouses.
• Almost 70 per cent of all buyers supported
by the Scheme purchased a house. By
comparison, 25 per cent purchased an
apartment and the remaining 5 per cent
purchased a townhouse.
• Four out of five apartment purchases under
the Scheme were in major cities, while
house purchases were more evenly spread
across major cities and regional areas.
• Of the 6,814 applicants who settled on
their
property or were issued a guarantee, almost
10 per cent purchased a newly constructed
dwelling, which included 381 who
purchased land separately and had a
contract to build; 142 purchased a house
and land package; and 105 purchased off-
the-plan.
Buyers were prepared to move some
distance away from their existing
residence to buy their rst home, with
purchases concentrated in outer city
areas.
• First home buyers under the Scheme
moved an average of 7.6 kilometres from
their prior residential address. Victorian
purchasers using the Scheme moved the
largest distance (an average of 10.4
kilometres) from their previous home.
• Nearly two-thirds of applicants buying in
the Greater Sydney region bought more
than 30 kilometres from the CBD, while
that figure is just under half for Greater
Melbourne. For other cities, the majority of
people purchased within 30 kilometres of
the CBD.
6. Australian Bureau of Statistics, Regional Population Growth, Australia, 2018-19, cat. No. 3218.0.
7. Australian Bureau of Statistics, Australian Demographic Statistics, Dec 2019, cat. No. 3101.0.
6
Demand for the Scheme was strong,
with early take-up of available Scheme
places.
• Almost 60 per cent of all Scheme places
that received a Commonwealth guarantee
had been taken up within the rst two
months of the Scheme’s operation.
The Scheme has supported many key
workers buying their rst home.
• More than one in six (1,804) rst home
buyers accessing the Scheme are key
workers.
• Teachers had the highest representation,
with 665 new home owners under the
Scheme (37 per cent of the entire key
worker cohort). This was followed by
nurses (25 per cent); defence force
personnel, reghters and police (13 per
cent); and childcare workers (10 per cent).
The Scheme has supported rst home
buyers and allowed them to bring
forward their home purchase.
• If purchasers under the Scheme did not
have alternative nancial means and had
to save the entire 20 per cent deposit, they
would have had to delay their rst home
purchase by an average of four years.
8
• The Scheme has enabled buyers to bring
forward their purchase by up to almost ve
years in NSW.
• As at 30 June 2020, the Commonwealth
Government had guaranteed almost $400
million in deposit shortfalls for rst home
buyers across Australia.
8. The savings rate of 18.6 per cent applied across the cohort was derived from Australian Bureau of Statistics, Household
Expenditure Survey, Australia: Summary of Results, 2015-16, cat. no. 6530.0. The savings rate is based on the third
income quintile. Figures are only indicative as household savings rates will differ according to individual circumstances.
7
The Scheme has helped homeowners
from across the income, age and
demographic spectrum purchase their
first property.
One in eight of all first home buyers accessed
the housing market under the FHLDS.
9
The Scheme has helped first home buyers
enter the housing market in the first six months
of 2020, including during the COVID-19
pandemic.
Comparable settlement data recorded between
March and June 2020 showed the Scheme
supported one in eight of all first home buyers
who purchased a home during this period.
10
In
Queensland and NSW, one in six of all first
home buyers accessed the Scheme over the
same period.
9, 10, 11.
Figure 3.1 – FHLDS settlements as a proportion of total rst home buyer
purchases – March 2020 to June 2020
11
3. TRENDS AND
INSIGHTS OF FHLDS
Source: ABS / NHFIC
FHLDS selements as a proporon of total FHBs
0%
5%
10%
15%
20%
25%
Qld NSW
Tas ACT SA Vic WA NT
Australian Bureau of Statistics, Lending Indicators, June 2020, cat. no. 5601.0. The ABS notes that there were uneven COVID-19
effects on reported
housing loan commitments. A full statement on the impact can be found on the ABS website. Given the
Scheme was implemented on 1 January 2020, and the associated time lag between pre-approval and settlement of a property,
the number of properties settled under the FHLDS could only be accurately benchmarked against the wider first home buyer
market over the period stated.
8
First Home Loan Deposit Scheme
More than half of all Scheme applicants have
settled or are living in their rst home.
Over the rst six months of 2020, 10,000
Scheme places were lled. Of those, 54.7 per
cent had settled, another 13.4 per cent had
been issued a guarantee and were awaiting
settlement, and 31.9 per cent had pre-
approval and are still looking to purchase.
Figure 3.2 – Total Scheme Places Disaggregated
Number of FHLDS places
Guarantees Pre-approvals Settlements
Number of FHLDS places
10,000
5,473
54.7%
SETTLEMENTS
1,341
13.4%
GUARANTEE
CERTIFICATES
3,186
31.9%
PRE-APPROVALS
Source: NHFIC
9
First Home Loan Deposit Scheme
The Scheme is supporting families
and individuals accessing the housing
market across the age and income
spectrum.
Half of all guarantees were issued to single
applicants in moderate income brackets –
earning $60,000 to $80,000 – which is 52 per
cent below the $125,000 eligibility income
threshold. The median property price for single
applicants was $370,000. Guarantees issued
to couples were concentrated in the higher
income brackets – between $90,000 and
$125,000 – with a higher median property
purchase price of $425,000.
12
The distribution of buyers by age and
household taxable income shows that 4,533
applicants were aged 25 to 34.
15
More than
10 per cent of all rst home buyers were over
the age of 40.
16
A total of 2,345 applicants
were earning between $90,000 and $125,000
per annum. Another 1,693 applicants were
earning between $60,000 and $80,000 per
annum, and 845 applicants were earning
between $125,000 and $150,000.
17
Income data captured under the Scheme is for the 2018–19 nancial year. First home buyers’ nancial circumstances
may have changed between 30 June 2019 and when the guarantee was issued.
The distribution by age is based on individual buyers, rather than Scheme places. Those who submitted their Scheme
application as a couple have been treated as two separate individuals for this analysis.
Figure 3.3 – Prole of the typical single buyer under the FHLDS
13
and prole of
the typical couple buyer under the FHLDS
14
12, 13, 14, 17.
15, 16.
Source: NHFIC
PURCHASE PRICE
AGE BRACKET
HOUSEHOLD INCOME
LOAN-TO-VALUE RATIO
$425,000
$370,000
25–34
$90K–$125K
$60K–$80K
95% 95%
25–34
$
$
$ $
10
Figure 3.5 – Distribution of guarantees under FHLDS – by income range
19
Figure 3.4 – Distribution of buyers under FHLDS – by age range
18
18. The distribution by age is based on individual buyers, rather than Scheme places. Those who submitted their
Scheme application as a couple have been treated as two separate individuals for this chart.
19. Income data captured under the Scheme is for the 2018–19 nancial year. First home buyers’ nancial
circumstances may have changed between 30 June 2019 and when the guarantee was issued.
Source: NHFIC Source: NHFIC
Singles Couples
0%
2%
4%
6%
8%
10%
12%
14%
Less than $37,000
$37,001 to $45,000
$45,001 to $50,000
$50,001 to $55,000
$55,001 to $60,000
$60,001 to $70,000
$70,001 to $80,000
$80,001 to $90,000
$90,001 to $100,000
$100,001 to $125,000
$125,001 to $150,000
$150,001 to $180,000
$180,001 to $200,000
Proportion of guarantee issued
Taxable household income
0%
5%
10%
15%
20%
25%
30%
35%
40%
18-24 25-29 30-34 35-39 40-49 50-59 60+
Proportion of first home buyers
Buyer age range
Proporon of rst home buyers
Buyer age range
Taxable household income range
Proporon of guarantees issued
11
Demand for the Scheme was strong,
with the early take up of available
Scheme places offered by major banks.
Within the rst two months of the Scheme’s
oper
ation, almost 60 per cent of all Scheme
places that received a Commonwealth
guarantee had been taken up. The rate at
which Scheme places were taken up was
heavily dependent on lender quotas, with
major bank quotas fully taken up by the first
week of February and non-major bank quotas
taken up towards the end of May 2020.
20
Over the rst six months of the Scheme’s
operation, NHFIC responded to over 2,800
phone calls and over 3,000 emails – the
bulk of which were in relation to the FHLDS.
Similarly, of the 678,858 visits to the NHFIC
website, the vast majority were users seeking
information about the Scheme.
Scheme places became available again when
potential rst home buyers withdrew their
application for reasons such as choosing not
to proceed with their home purchase and/or
because their reservation expired.
Number of Scheme places/guarantees
(rolling weekly average)
Figure 3.6 – Scheme places taken up and guarantee certicates issued –
January 2020 to June 2020
Source: NHFIC
0
200
400
600
800
Initial major bank
quota taken up
COVID-19 social distancing
restrictions implemented
Secondary major
bank quota taken up
Non major bank
quota taken up
Scheme places taken up
Guarantee certicates issued
Second major bank
quota taken up and
non major bank
places released
COVID-19 social distancing
restricons implemented
Inial major bank
quota taken up
20. The major banks were able to issue guarantees from 1 January 2020, while non-major banks were able to
issue guarantees from 1 February 2020.
12
Buyers under the Scheme had a
preference for detached houses relative
to apartments or townhouses.
Almost 70 per cent of buyers supported by
the Scheme purchased a house. By contrast,
more than 25 per cent bought an apartment
and the remaining 5 per cent purchased a
townhouse.
This trend was consistent across all states
and territories, with the exception of the
ACT. Almost two-thirds of buyers in the ACT
purchased an apartment, while 20 per cent
bought a house and the remainder purchased
a townhouse.
The median price for apartments purchased
under the Scheme was $475,000, which was
considerably higher than the median price of
$385,000 paid for houses. This was due to
most of the apartments being in capital cities
(83 per cent), while the houses were more
evenly spread across capital cities (54 per
cent) and regional areas (46 per cent).
Of the 6,814 applicants who settled on their
property or were issued a guarantee, almost
10 per cent purchased a newly constructed
dwelling, which included 381 who purchased
land separately and had a contract to build;
142 purchased a house and land package;
and 105 purchased off-the-plan.
Location House Townhouse Unit or
apartment
Capital Cities 54.1% 68.5% 82.6%
Regional areas 45.9% 31.5% 17.4%
Table 3.1 – Proportion of settlements by location and dwelling type
Source: NHFIC
13
The Scheme has broad geographical
reach across all states and territories.
Geographic distribution of places largely in
line with the resident population.
First home buyers in all states and territories,
all major cities and many regional areas
have beneted from the FHLDS. Scheme
guarantees were mostly concentrated in NSW
(2,263), followed by Queensland (1,845)
and Victoria (1,617). Eight out of 10 loans
guaranteed under the Scheme were in these
three states.
The distribution of guarantees issued under
the Scheme across the states and territories
broadly aligns with the distribution of the
resident population, with the exception of
Western Australia and South Australia.
21
This is likely attributed to the longstanding
Keystart and HomeStart low deposit home
loan initiatives currently active in Western
Australia and South Australia, respectively.
Figure 3.7 – Distribution of guarantees under the Scheme compared with population
22
0%
5%
10%
15%
20%
25%
30%
35%
NSW Qld Vic WA SA Tas ACT NT
Proportion of guarantee issued
Guarantee share Population share
21, 22. Australian Bureau of Statistics, Australian Demographic Statistics, Dec 2019, cat. no. 3101.0.
Source: ABS / NHFIC
Proportion of guarantees issued/population
14
First Home Loan Deposit Scheme
By postcode, demand for the Scheme was
highest in 4350, Toowoomba area, in southern
Queensland (70 loans guaranteed). Other
postcodes with large amounts of rst home
buyers supported by the Scheme were 4305,
in south-west Brisbane, Queensland (56);
followed by 2560, in South Western Sydney,
NSW (54); 3064 in north-west Melbourne,
Victoria (52); 3810 (49) and 3977 (49), in
south-east Melbourne, Victoria; and 2570, also
in South Western Sydney, NSW (47).
Figure 3.8 – Top 10 postcodes by number of guarantees issued
Location: 4740, Mackay, Qld
Guarantees: 45
Location: 4350, Toowoomba area, Qld
Guarantees: 70
Location: 4305, Ipswich Inner, Qld
Guarantees: 56
Location: 2570, Camden, NSW
Guarantees: 47
Location: 2560, Campbelltown, NSW
Guarantees: 54
Location: 3810, Cardinia, Vic
Guarantees: 49
Location: 3977, Casey - South, Vic
Guarantees: 49
Location: 3030, Werribee, Vic
Guarantees: 45
Location: 3029, Wyndham, Vic
Guarantees: 46
Location: 3064, Tullamarine - Broadmeadows, VIC
Guarantees: 52
Source: NHFIC
15
Purchases were concentrated in outer
city and metropolitan areas, but regional
areas were also well represented.
Buyers were prepared to move some
distance away from their existing residence
to purchase their rst home.
Demand under the Scheme was heavily
concentrated in the outer suburban ar
eas of
the major cities, particularly in Sydney and
Melbourne, and in some satellite regional
centres.
First home buyers purchasing a home
under the Scheme moved an average of
7.6 kilometres from their existing residence.
Victorian purchasers using the Scheme moved
the greatest distance (10.4 kilometres),
followed by NSW (7.5 kilometres) and
Tasmania (7.5 kilometres)
23
.
Figure 3.9 – Geographic distribution of guarantees issued – Sydney, Melbourne and Brisbane
23, 24.
Distance calculations were based on postcodes, rather than individual addresses. The relevant geocodes were then applied to
calculate the distance from one postcode to another. Analysis excludes any first home buyers under the Scheme that
purchased outside of the capital city Greater Capital City Statistical Area. The majority of first home buyers under FHLDS within
the Northern Territory purchased a property in the same postcode as their previous residence.
Number of Guarantees
3240
Figure 3.10 – Median distance between purchased property and prior residence
24
7.6 km
10.4 km
7.5 km
7.5 km
7.0 km
6.3 km
6.0 km
5.8 km
0.0 km
0
2
4
6
8
10
12
National average Vic NSW Tas Qld SA ACT WA NT
'Median distance from prior residence and purchased
property (km)
Source: NHFIC
Median distance from prior residence
and purchased property (km)
Sydney
Brisbane
Melbourne
16
More than half of all purchases under the Scheme in the Greater
Capital City Statistical Areas were between 15 kilometres and
30 kilometres from the nearest capital city CBD. Fewer than a
quarter were less than 15 kilometres from the CBD.
25
Almost a third of all single applicants purchased within 15
kilometres of the nearest capital city CBD. However, only 13
per cent of all couple applicants purchased in this zone. Couple
applicants tended to purchase further away from the nearest
capital city CBD than single applicants.
27
Figure 3.11 – Distance between purchased property and nearest capital city
CBD
26
25, 26, 27.
Distance calculations were based on postcodes, rather than individual addresses. The relevant geocodes were
then applied to calculate the distance from one postcode to another. Analysis excludes any rst home buyers
under the Scheme that purchased outside of the capital city Greater Capital City Statistical Area.
0-15Km 15-30Km 30-50Km 50Km+
Singles Couples
Source: NHFIC
0%
5%
10%
15%
20%
25%
30%
35%
40%
Proportion of buyers purchasing within range of the nearest capital city CBD
Distance from nearest capital city CBD
Proporon of buyers purchasing within
range of the nearest capital city CBD
Distance from nearest capital city CBD
17
Distance from
CBD (km)
Adelaide Brisbane Canberra Hobart Melbourne Perth Sydney
0-15km 42.3% 27.2% 40.1% 57.1% 22.5% 32.2% 12.9%
15-30km 44.4% 48.2% 49.7% 14.3% 30.2% 30.4% 23.9%
30-50km 13.3% 21.1%
8.9% 33.0% 28.9% 32.1%
50km+ 3.6% 10.2% 19.6% 14.3% 8.5% 31.1%
Table 3.2 – Proportion of settlements in each capital city by distance from purchased
property and the CBD
29
Nearly two-thirds of applicants buying in
the Greater Sydney region purchased their
home more than 30 kilometres from the
CBD. Purchases were less concentrated in
Melbourne. In most of the other capital cities,
the majority of buyers purchased within 30
kilometres of their respective CBDs, including
nine out of 10 purchases in Adelaide and
Canberra.
28
28, 29. Distance calculations were based on postcodes, rather than individual addresses. The relevant
geocodes were then applied to calculate the distance from one postcode to another.
Source: NHFIC
Percentages for each capital city may not add to 100 due to rounding.
18
The Scheme has helped many key
workers buy their rst home.
More than 1,800 key workers purchased their
rst home with support from the FHLDS.
In the six months to June 2020, more than
1,800 teachers, nurses, emergency service
workers, defence force personnel and
childcare workers entered the housing market
with the support of the FHLDS. These key
workers accounted for just over 18 per cent
of all individuals accessing the Scheme during
the period. Of these key workers, 37 per
cent were teachers and 25 per cent were
nurses. Defence force personnel, reghters
and police accounted for 13 per cent, while
childcare workers (10 per cent) also provided
strong demand.
30
Nurses
#Guarantees: 445
24.7%
Defence force,
fire fighters and
police
#Guarantees: 235
13.0%
Child
Carers
# Guarantees:
172
9.5%
Teachers*
#Guarantees: 665
36.9%
Ambulance
Officers
Social and
Welfare
Workers
Carers and
Aides
30. The occupations classied as key workers were pre-primary, primary and secondary school teachers; nurses; childcare workers; carers
and aides; defence force members, reghters and police; ambulance ofcers and paramedics; and social and welfare professionals.
Figure 3.12 – Key workers who purchased under the FHLDS, 1 January to 30 June 2020
Source: NHFIC
*Includes pre-primary, primary and secondary school teachers
**Includes education aides and health and welfare services
#Guarantees:
91
5.0%
#Guarantees:
87
4.8%
#Guarantees:
78
4.3%
Other **
#Guarantees:
31
1.8%
19
First Home Loan Deposit Scheme
The Scheme has helped rst home buyers bring
f
orward their home purchase.
The main objective of the FHLDS is to help rst home buyers
enter the housing market sooner.
Those without alternative nancial means or access to the
Scheme would inevitably have to delay their home purchase.
For example, without the Scheme or alternative nancial
means, a typical buyer in NSW would need to delay their
purchase by almost ve years to save the entire 20 per cent
deposit.
31
As at 30 June 2020, the Commonwealth Government had
guaranteed almost $400 million in deposit shortfalls for rst
home buyers across Australia. NSW, Victoria and Queensland
accounted for 87.4 per cent of the total amount guaranteed.
Some guarantee recipients also received other government
support.
For every ve guarantees under the Scheme, two applicants
accessed an additional government incentive. Other
government incentives offered to rst home buyers included
state and territory stamp duty concessions, the First Home
Owner Grant and the Commonwealth Government’s First
Home Super Saver Scheme. Around 40 per cent of buyers
under the FHLDS also received stamp duty concessions, while
14 per cent received a rst home owner state or territory grant
(noting that grant eligibility varies between jurisdictions; for
example, in NSW, these grants can only be applied to new
builds). Around 4 per cent also accessed the First Home Super
Saver Scheme.
State
Additional amount
required for 20%
deposit
Time to save
additional amount
(months)
NSW $65,221 57
Vic $59,000 54
ACT $60,875 54
WA $45,000 48
SA $44,625 48
Tas $39,920 47
Qld $49,000 45
NT $46,700 39
National average $54,700 52
Table 3.3 – Average time buyers need to save the additional amount
for a 20 per cent deposit
32
31, 32. Savings rate of 18.6% applied across the cohort, derived from ABS Household Expenditure Survey, Australia: Summary of
Results, 2015-16, cat. 6530.0. Savings rate based on the third income quintile. Figures are only indicative as household
savings rates will differ based on individual circumstances.
Source: ABS / NHFIC
20
State or
territory
Median
debt
Median debt-to-
income ratio
ACT $420,000 4.2
NSW $427,500 4.7
NT $310,000 3.7
Qld $330,000 3.4
SA $294,500 3.7
Tas $270,750 4.2
Vic $456,000 4.7
Financial aspects of the Scheme
(loan-to-value ratio, debt-to-income
ratio, average loan size, average
monthly repayments and loan
origination).
The majority of buyers under the Scheme
(82.5 per cent) borrowed between 90 per
cent and 95 per cent of the property price.
Almost two-thirds borrowed between 94 per
cent and 95 per cent. The median debt-to-
taxable-income ratio was 4.3, with purchasers
owing an average of $374,200. The ratio
deviates when broken down by region:
those purchasing in the Greater Capital City
Statistical Areas had a debt-to-taxable-income
ratio of 4.7, compared with purchases in
regional areas where the ratio was 3.9. The
average buyer in Victoria had the highest debt
($456,000) and a debt-to-income ratio of 4.7.
Table 3.4 – Distribution of guarantees by
loan-to-value ratio (LVR)
Table 3.5 – Median debt and debt-to-income ratio by state and
territory (LVR)
LVR range
Proportion of
guarantees issued
80–85 1.6%
85–90 15.9%
90–94 16.3%
94–95 66.2%
Source: NHFIC
21
First Home Loan Deposit Scheme
The average monthly mortgage repayment
for borrowers using the Scheme was $1,729
at the point of funding, which is equivalent
to 30 per cent of household disposable
income. This varies across the states and
territories. In NSW and Victoria, on average,
mortgage repayments are a third of household
disposable income. Unsurprisingly, buyers in
these states recorded the highest average
repayment-to-income ratio, due to higher
property purchase prices. In other states
and territories, mortgage repayments were
an average of 26 per cent of household
disposable income, except the Northern
Territory, where it was 20.6 per cent on
average.
33
Buyers using the Scheme borrowed less than
those in the broader rst home buyer market.
Between March and June 2020, buyers in
NSW using the FHLDS borrowed an average
of $430,000, compared with an average of
$520,000 for the broader NSW rst home
buyer market.
34
Figure 3.13 – Median minimum mortgage repayment as a proportion
of household disposable income
0%
5%
10%
15%
20%
25%
30%
35%
NSW Vic ACT Tas SA WA Qld NT
Median minimum repayment as a
proportion of household income
Source: NHFIC
Median minimum repayment as a proporon of
household income
Figure 3.14 – Average loan size, FHLDS vs total rst home buyer market – March 2020 to
June 2020
35
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
ACT NSW NT Qld SA Tas Vic WA
Median loan size
Total rst home buyer market FHLDS buyers
Source: ABS / NHFIC
Average loan size
Mortgage minimum repayments were calculated using the point of
funding for the principal loan amount, interest rate and loan term.
Household income data captured under the Scheme was based on the
2018–19 financial year. First home buyers’ financial circumstances may
have changed between 30 June 2019 and when the guarantee was
issued.
Australian Bureau of Statistics, Lending Indicators, June 2020, cat. no.
5601.0. The ABS notes that there were uneven COVID-19 effects on
reported
housing loan commitments. A full statement on the impact can
be found on the ABS website. Given the Scheme was implemented on 1
January 2020, and the associated time lag between pre-approval and
settlement of a property, the number of properties settled under
the FHLDS could only be accurately benchmarked against the wider
rst home buyer market over the period stated.
33.
34, 35.
22
First Home Loan Deposit Scheme
Source: NHFIC
Most guarantees were issued through mortgage
brokers.
Ov
er the rst six months of the Scheme, and in line
with the broader market almost half (46.1 per cent)
of all loans guaranteed originated from a mortgage
broker. A further 38.4 per cent originated from
typical bank branches, and the remainder came from
other sources such as mobile and online lenders,
and by telephone. Excluding the month of January
(major banks only began offering loans originating
from mortgage brokers in February), the proportion
of mortgage-brokered loans under the Scheme
was 53.4 per cent. On a state and territory level,
Western Australia recorded the most (61.9 per
cent) guaranteed loans originating with a mortgage
broker.
Figure 3.15 – Loans guaranteed by origination channel
3,142
46.1%
MORTGAGE BROKER
346
5.1%
OTHER
707
10.4%
MOBILE LENDER
2,619
38.4%
BANK BRANCH
CONCLUSION
In the rst six months of operation, 10,000 places were
allocated under the Australian Government’s First Home
Loan Deposit Scheme (FHLDS). Around one in eight of all
rst home buyer purchases between March and June 2020
were backed by a Federal Government guarantee under the
Scheme. FHLDS has supported people across the age and
income spectrums, including many younger buyers, but also
some older cohorts purchasing their rst home. The Scheme
has had broad geographical reach supporting rst home
buyers across the country with strong interest from buyers in
outer metropolitan and regional areas. First time buyers have
been able to bring forward their home purchases in line with
the objectives of the Scheme.
FHLDS has now cemented itself as part of the rst home
buyer support policy architecture. The second iteration of
guarantees was released from 1 July 2020 which will seek to
support another 10,000 aspiring rst home buyers over the
current nancial year. NHFIC will continue to monitor trends
and developments in the Scheme and will report annually on
these ndings.
23
Figure 4.1 – FHLDS guarantees issued in NSW
Location* Postcode
Campbelltown 2560
Camden 2570
Newcastle 2287
Gosford 2250
Dubbo 2830
Bringelly - Green Valley 2179
Wyong 2259
Penrith 2747
Wagga Wagga 2650
Kiama - Shellharbour 2527
Number of guarantees
issued
Number of settlements Median property
purchase price
2,263 1,809 $450,000
Median deposit paid by
borrower
Purchase price relative to
price cap
Median buyer age
$29,250 79.9% 28
4. STATE AND TERRITORY ANALYSIS
New South Wales
*Locaon refers to the largest associated Stascal Area Level 3, as reported on by the
Australian Bureau of Stascs
Table 4.1 – Top NSW postcodes for guarantees
As at 30 June 2020
Number of Guarantees
3240
SydneySydney
SydneySydney
24
Figure 4.2 – FHLDS guarantees issued in Victoria
Location* Postcode
Tullamarine - Broadmeadows 3064
Casey - South 3977
Cardinia 3810
Wyndham 3029
Wyndham 3030
Casey - South 3978
Whittlesea - Wallan 3754
Geelong 3216
Melton - Bacchus Marsh 3337
Melton - Bacchus Marsh 3338
Victoria
Number of guarantees
issued
Number of settlements Median property
purchase price
1,617 1,270 $495,000
Median deposit paid by
borrower
Purchase price relative to
price cap
Median buyer age
$29,250 82.0% 29
Table 4.2 – Top Victoria postcodes for guarantees
*Locaon refers to the largest associated Stascal Area Level 3, as reported on by the
Australian Bureau of Stascs
As at 30 June 2020
Number of Guarantees
3240
MelbourneMelbourne
MelbourneMelbourne
25
Queensland
Location* Postcode
Toowoomba 4350
Ipswich Inner 4305
Mackay 4740
Caboolture 4510
Ormeau - Oxenford 4209
Townsville 4814
Rockhampton 4701
Townsville 4818
North Lakes 4503
Springeld - Redbank 4300
Number of guarantees
issued
Number of settlements Median property
purchase price
1,845 1,508 $350,000
Median deposit paid by
borrower
Purchase price relative to
price cap
Median buyer age
$20,000 76.1% 28
Figure 4.3 – FHLDS guarantees issued in Queensland
Table 4.3 – Top Qld postcodes for guarantees
*Locaon refers to the largest associated Stascal Area Level 3, as reported on by the
Australian Bureau of Stascs
As at 30 June 2020
Number of Guarantees
3240
BrisbaneBrisbane
BrisbaneBrisbane
26
Figure 4.4 – FHLDS guarantees issued in Western Australia
Table 4.4 – Top WA postcodes for guarantees
Location* Postcode
Rockingham 6171
Rockingham 6169
Mandurah 6210
Stirling 6061
Armadale 6112
Wanneroo 6065
Cockburn 6164
Wanneroo 6030
Kwinana 6167
Gosnells 6110
Western Australia
Number of guarantees
issued
Number of settlements Median property
purchase price
441 351 $335,000
Median deposit paid by
borrower
Purchase price relative to
price cap
Median buyer age
$19,115 81.8% 27
*Locaon refers to the largest associated Stascal Area Level 3, as reported on by the
Australian Bureau of Stascs
As at 30 June 2020
Number of Guarantees
3240
PerthPerth
Perth
27
South Australia
Location* Postcode
Onkaparinga 5162
Playford 5114
Onkaparinga 5159
Port Adelaide - East 5085
Gawler - Two Wells 5118
Limestone Coast 5290
Salisbury 5108
Tea Tree Gully 5092
Tea Tree Gully 5097
Adelaide Hills 5251
Figure 4.5 – FHLDS guarantees issued in South Australia
Number of guarantees
issued
Number of settlements Median property
purchase price
332 283 $306,000
Median deposit paid by
borrower
Purchase price relative to
price cap
Median buyer age
$18,250 77.8% 27
Table 4.5 – Top SA postcodes for guarantees
*Locaon refers to the largest associated Stascal Area Level 3, as reported on by the
Australian Bureau of Stascs
As at 30 June 2020
Number of Guarantees
3240
Adelaide
Adelaide
28
Tasmania
Location* Postcode
Devonport 7310
Launceston 7250
Launceston 7248
Hobart - North East 7019
Burnie - Ulverstone 7320
Launceston 7249
Hobart - North West 7140
Hobart - North West 7011
Hobart - North West 7010
Sorell - Dodges Ferry 7172
Figure 4.6 – FHLDS guarantees issued in Tasmania
Number of guarantees
issued
Number of settlements Median property
purchase price
138 112 $285,000
Median deposit paid by
borrower
Purchase price relative to
price cap
Median buyer age
$15,500 86.2% 26
Table 4.6 – Top Tas postcodes for guarantees
*Locaon refers to the largest associated Stascal Area Level 3, as reported on by the
Australian Bureau of Stascs
As at 30 June 2020
Number of Guarantees
3240
Hobart
Hobart
29
Australian Capital Territory
Figure 4.7 – FHLDS guarantees issued in the ACT
Table 4.7 – Top ACT postcodes for guarantees
Location* Postcode
Gungahlin 2913
Belconnen 2617
Weston Creek 2611
Gungahlin 2914
Tuggeranong 2906
Belconnen 2615
North Canberra 2602
North Canberra 2612
Tuggeranong 2905
South Canberra 2604
*Locaon refers to the largest associated Stascal Area Level 3, as reported on by the
Australian Bureau of Stascs
Number of guarantees
issued
Number of settlements Median property
purchase price
147 116 $442,000
Median deposit paid by
borrower
Purchase price relative to
price cap
Median buyer age
$24,250 85.6% 29
As at 30 June 2020
Number of Guarantees
3240
Canberra
30
Northern Territory
Figure 4.8 – FHLDS guarantees issued in the Northern Territory
Number of guarantees
issued
Number of settlements Median property
purchase price
31 24 $340,000
Median deposit paid by
borrower
Purchase price relative to
price cap
Median buyer age
$18,500 86.8% 30
*Due to insufficient sample size, the top NT postcodes for guarantees is not reported on.
As at 30 June 2020
Number of Guarantees
3240
Darwin
Darwin
31
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Corporation 2020. Apart from any use as permitted
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