First Home Loan Deposit Scheme Announced

First Home Loan Deposit Scheme Announced

The Federal Government has announced it will introduce a First Home Loan Deposit Scheme to support first home buyers purchase a property faster.

Expected to commence on 1 January 2020, the Scheme will be administered by the National Housing Finance and Investment Corporation (NHFIC), subject to the passage of legislative amendments, and assist eligible buyers with a minimum five per cent deposit rather than the industry standard of 20 per cent.

In anticipation, NHFIC is undertaking detailed consultations with mortgage lenders regarding their potential participation. They are seeking feedback on implementation of the Scheme via a market sounding process. This is a pre-cursor to a procurement process which will be used to establish a panel of lenders to participate in the Scheme.