First Home Loan Deposit Scheme

<p>Some 30,000 new places are available under the Australian Government&rsquo;s First Home Loan Deposit Scheme, the New Home Guarantee, and the Family Home Guarantee from July 1, 2021.</p>

<p>Some 10,000 additional places have been released under the First Home Loan Deposit Scheme for the 2021-2022 financial year.&nbsp;</p>

<p>The scheme supports eligible first home buyers purchase an established home or a new home sooner with a deposit of as little as 5 per cent.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=27406 project_image_fid=68117]</p>

<p>New property price caps will apply from today for the First Home Loan Deposit Scheme.</p>

<p>These property price caps also apply to the Family Home Guarantee, a scheme which was announced in the 2021-2022 Federal Budget to support eligible single parents with at least one dependent child.&nbsp;</p>

<p>There will be 10,000 Family Home Guarantees made available over four financial years from 1 July 2021 to buy a new or existing home with a deposit of as little as 2 per cent.</p>

<p>The New Home Guarantee, announced in October 2020, is specifically for eligible first home buyers building or buying a new home with a deposit of as little as 5 per cent.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=3260 project_image_fid=62318]</p>

<p>It has been extended under the 2021-2022 Federal Budget with 10,000 new places available from 1 July 2021 to 30 June 2022.</p>

<p>Applications for the three schemes can be made through participating lenders or mortgage providers.</p>

<p>Information about the schemes, price caps, eligibility requirements and how to apply can be found on the <a href="https://www.nhfic.gov.au/what-we-do/support-for-buying-a-home/">updated website here</a>.<br />
&nbsp;</p>


From today, 30,000 new places are available under the Australian Government’s First Home Loan Deposit Scheme, the New Home Guarantee, and the Family Home Guarantee.

jchancellor

30,000 government grants for property buyers kick off July 1, 2021

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<p>Coronavirus-impacted “pockets” of Sydney’s north-west and inner-south-west have seen falling median values create opportunities for first home buyers, according to CoreLogic head of research, Eliza Owen.</p>

<p>Although Australia’s residential property market has shown resilience, despite the shock of the pandemic, recent value falls may have created an opportunity for first home buyers who want to take advantage of the first home loan deposit scheme (FHLDS).</p>

<p>On February 3, minister for housing Michael Sukkar announced the reissue of around 1,800 FHLDS places, creating opportunity in suburbs where unit medians have slipped below the Sydney threshold of $700,000.</p>

<p>As of January 2021, there was an average of 107 suburbs observed in the capital cities with a median value at or below the qualifying threshold for the FHLDS, assuming the application is for an established property.</p>

<p>In Sydney, where international border closures have created a particular demand shock, median unit values have declined up to -$88,146 between March 2020 and January 2021.</p>

<p><a href="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/corelogic_0.png"><img alt="" height="860" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/corelogic_0.png" width="1446"></a></p>

<p><a href="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/corelogic_0.png" target="_blank">Click here</a> to enlarge image.</p>

<p>As evident in CoreLogic’s data, Rouse Hill had a pre-pandemic median value at $726,900, which has fallen to just $638,755. While other suburbs like Arncliffe and Hurstville have seen changes in median value at -$31,185 and -$65,019, respectively.  </p>

<p>“As more of the housing market is caught in a broad-based upswing, first home buyers could face more challenges getting into the market in the year ahead”, Owen said.<br>
 </p>

<h2>Sydney units listed at or below the qualifying threshold for the FHLDS<strong> </strong>
</h2>

<p><strong>1. Beyond, Hurstville</strong><br>
Address: 93 Forest Road, Hurstville NSW 2220<br>
One-bedroom apartments (with study) from $685,000</p>

<p>[smartcode_project:default project_id=6798]</p>

<p>Developed by Fridcorp, Beyond’s one-bedroom apartments are listed below the $700,000 qualifying threshold for the first home loan deposit scheme.  </p>

<p>The Woods Bagot and DKO Architecture-designed project features sculptural architecture, multi-sensory living, oversized balconies and a 4,500sqm retail precinct anchored by Woolworths.<br>
 </p>

<p><strong>2. Bloom Arncliffe</strong><br>
Address: 213 Princes Highway, Arncliffe NSW 2205<br>
One-bedroom apartments from $595,000</p>

<p>[smartcode_project:default project_id=6201]</p>

<p>The recently completed residential precinct, Bloom Arncliffe, offers 318 apartments across seven buildings, starting from $595,000 – well below the deposit scheme’s price cap.</p>

<p>Delivered by Wingate and designed by Stephen Bowers Architects, the development includes 37 commercial spaces, a youth centre, gym and support facilities.</p>
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Recent value falls may have created an opportunity for first home buyers who want to take advantage of the first home loan deposit scheme

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The Sydney suburbs now qualifying for First Home Loan Deposit Scheme after price falls

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<p>Australia’s residential property market has shown resilience, despite the shock of the coronavirus pandemic. However, impacted “pockets” of Melbourne have seen falling median values create opportunities for buyers, said CoreLogic head of research, Eliza Owen.</p>

<p>On February 3, minister for housing Michael Sukkar announced the reissue of around 1,800 first home loan deposit scheme (FHLDS) places.</p>

<p>“Recent value falls may have created an opportunity for first home buyers, where there is a maximum purchase price cap to qualify for the scheme”, Owen said.</p>

<p>As of January 2021, there was an average of 107 suburbs observed in the capital cities with a median value at or below the qualifying threshold for the FHLDS, assuming the application is for an established property.</p>

<p>In Melbourne’s inner-region, where median values have declined an average -$33,313 between March 2020 and January 2021, unit medians that have slipped below this threshold, providing the chance for first home buyers to secure a new home.</p>

<p>Melbourne’s property price caps for established units under the scheme sits at $600,000, where suburbs like Docklands, Brunswick and South Melbourne would normally not qualify.</p>

<p>As evident in CoreLogic’s data, revealing city suburbs where the median value fell below the established property price threshold since the onset of COVID-19, Docklands had a pre-pandemic median value at $645,924, which has fallen close to $50,000. Docklands' January 2021 median values are listed at $596,486.</p>

<p><a href="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/corelogic.png"><img alt="" height="860" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/corelogic.png" width="1446"></a></p>

<p>“As noted in previous research, the Inner region of Melbourne has seen particularly severe declines in rent and property values since the onset of COVID-19”, said Owen.</p>

<p>CoreLogic attributes this to Melbourne’s historically high exposure to housing demand from overseas migrants, such as international students, which has been significantly affected by the pandemic.  </p>

<p>“As more of the housing market is caught in a broad-based upswing, first home buyers could face more challenges getting into the market in the year ahead”, Owen said.<br>
 </p>

<h2>Apartments in Melbourne listed below the qualifying threshold for the FHLDS</h2>

<p><strong>1. Folia, Doncaster</strong><br>
Address: 59 Stables Circuit, Doncaster VIC 3108<br>
Two-bedroom apartments from $580,000</p>

<p>[smartcode_project:default project_id=22584]</p>

<p>With two-bedroom apartments priced from $580,000, Folia offers architecturally-designed homes below the qualifying threshold for the first home loan deposit scheme.</p>

<p>Designed and delivered by Mirvac, boasts a curved façade, rooftop conservatory and sustainable features, including a 70kWh solar panel array.<br>
 </p>

<p><strong>2. Melbourne Quarter, Docklands</strong><br>
Address: 628 Flinders Street, Docklands VIC 3108<br>
One-bedroom apartments from $458,000</p>

<p>[smartcode_project:default project_id=3459]</p>

<p>Home buyers can enjoy a one-bedroom, one-bathroom apartment for as low as $458,000 at Lendlease’s Melbourne Quarter.</p>

<p>Designed by the award-winning Fender Katsalidis, Melbourne Quarter offers residents CBD convenience, a hotel-style lobby, concierge and exclusive access to Club MQ, three whole floors of resort-style amenities.<br>
 </p>

<p><strong>3. M-City, Clayton</strong><br>
Address: 2106 Dandenong Road, Clayton VIC 3168<br>
Two-bedroom apartments from $540,800</p>

<p>[smartcode_project:default project_id=528]</p>

<p>Schiavello’s M-City offers 460 residences across four buildings at an entry price of $371,000 for a one-bedroom, one-bathroom residence.</p>

<p>Designed by Buchan Group, the apartments boast smart design features, private balconies and resort-style amenities, including a community childcare centre, outdoor pool and tennis court.</p>
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Falling median values impacting “pockets” of Melbourne has created opportunities for first home buyers, says CoreLogic's Eliza Owen

The Melbourne suburbs now qualifying for First Home Loan Deposit Scheme after price falls

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<p>The Federal Housing minister Michael Sukkar has announced that 1800 unused First Home Loan Deposit Scheme spots would be reissued this week.</p>

<p>They date back to the early days of the federal government’s scheme in January 2020.</p>

<p>The initial 10,000 spots were granted a 90-day extension to buy their desired first home on top of their original three months after COVID lockdowns made property hunting difficult.</p>

<p>Almost 1 in 5 of those spots were left unused, a government spokesperson told Domain this week.</p>

<p>The scheme allows singles earning up to $125,000 and couples earning up to $200,000 to borrow up to 95 per cent of a property’s purchase price without having to pay lender’s mortgage insurance.</p>

<p>Properties had to be below price thresholds, ranging from $475,000 in Brisbane to $700,000 for an existing property in Sydney.</p>

<p>The third tranche last October which was restricted to new homes only has seen just 4200 of the 10,000 slots taken up.</p>
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Properties have to be below price thresholds, ranging from $475,000 in Brisbane to $700,000 for an existing property in Sydney.



1800 unused First Home Loan Deposit Scheme spots to be reissued

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<div><strong><span style="text-decoration: underline;">Deposit scheme scramble</span></strong></div>
<div> </div>
<div>As REA Group, correctly anticipated, first homebuyer numbers are getting set to rip higher.</div>
<div> </div>
<div>The Australian reports today that well over 4,000 of the 10,000 places made available for the First Home Loan Deposit Scheme (FHLDS) effective 1 July have been reserved in less than four weeks. </div>
<div> </div>
<div>The federal government is therefore considering extending the scheme reports the article:</div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-UbzA0cR-6WA/XyH56IexfKI/AAAAAAAA3Vg/y_Vif17MErcybRF0__rd7_cOqJ9loQLIQCNcBGAsYHQ/s640/FHLDS.jpg" width="640" height="78" data-original-height="96" data-original-width="772"></div>
<div> </div>
<div>The FHLDS potentially allows thousands of first homebuyers to buy using only a 5 per cent deposit. </div>
<div> </div>
<div>With all of the other grants and stamp duty exemptions being thrown in around the country, it's no surprise that first homebuyers are taking advantage of the lowest mortgage rates in history to take the plunge. </div>
<div> </div>
<div>New houses have been particularly popular for FHLDS applicants...more so than apartments and townhomes.  </div>
<div> </div>
<div>First homebuyer numbers had slowed in May, but now look set to retake decade highs.</div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-mHjeF2-0gtA/XyH7HN-IHAI/AAAAAAAA3Vw/Uk-KbiqlBWAXNtHT-v34rIm4ut-ZxGaqACNcBGAsYHQ/s640/FHB.jpg" width="640" height="362" data-original-height="806" data-original-width="1422"></div>
<div> </div>
<div>Meanwhile the New South Wales government looks set to have another crack at Build to Rent by offering land tax discounts.</div>
<div> </div>
<div>It's an overrated and misunderstood concept which rarely seems to work well.</div>
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pwargent-M4siyDbqQY

First home buyer numbers set to grow: Pete Wargent

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<p class="HPS-Normal">As announced by Prime Minister Scott Morrison during the 2019 election campaign, from 1 January 2020 eligible first home buyers will be able to enter the housing market sooner.</p>
<p class="HPS-Normal">Up to 10,000 guarantees per year will allow eligible first home buyers to purchase a home with a deposit of as little as five per cent.</p>
<p class="HPS-Normal"><span class="HPS-Normal">Applicants will be subject to a range of eligibility criteria, including taxable incomes of up to $125,000 per annum for singles and up to $200,000 per annum for couples in the previous year, they must be Australian citizens purchasing property in Australia and they must be taking out owner-occupied loans on a principal and interest basis. </span></p>
<p class="HPS-Normal"><span class="HPS-Normal">Properties purchased under the First Home Loan Deposit Scheme will be subject to regional price caps. </span></p>
<p class="HPS-Normal"><span class="HPS-Normal">Regional price caps will be set with a view to ensuring equitable access to the scheme across Australia.</span></p>
<p class="HPS-Normal"><span class="HPS-Normal">The coverage of the guarantee will be broadly consistent with parental guarantee products offered by some lenders. The guarantee will remain in place until a loan is refinanced or the outstanding loan balance falls below 80 per cent of the property purchase price—whichever comes first.</span></p>
<p class="HPS-Normal"><span class="HPS-Normal">Access to the First Home Loan Deposit Scheme will occur as part of the normal home loan application process, with limited additional effort for first home buyers being required when seeking a guaranteed loan, the </span>assistant Treasurer and Minister for Housing, Michael Sukkar said.</p>
<p class="HPS-Normal"><span class="HPS-Normal">The bill introduces amendments to the National Housing Finance and Investment Corporation Act 2018 to implement the First Home Loan Deposit Scheme and establish a new research function within the National Housing Finance and Investment Corporation.</span></p>
<p class="HPS-Normal"><span class="HPS-Normal">The bill expands the National Housing Finance and Investment Corporation's functions to enable it to provide guarantees.</span></p>
<p class="HPS-Normal"><span class="HPS-Normal">Sucker noted based on median household income and a 15 per cent saving rate (on before-tax income), it takes approximately eight years to save a 20 per cent deposit on a median priced home. </span></p>
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How the First Home Loan Deposit Scheme guarantee will work 

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<p>New data shows the Morrison Government’s successful First Home Loan Deposit Scheme has helped get Australians into a home of their own up to four years earlier than they had planned.</p>
<p>The National Housing Finance and Investment Corporation (NHFIC) Trend and Insight Report, shows the Scheme had an outstanding first year.</p>
<p>The Report also found the Scheme supported one in eight of all first home buyers who purchased a home in Australia between March and June 2020.</p>
<p>Australia’s essential workers secured one in six of the Scheme’s guarantees and around three quarters of guaranteed loans were taken up by Australians aged between 18 and 34 years of age.</p>
<p>Guaranteed loans were secured in all parts of the nation with major cities attracting 62.3 per cent of buyers under the Scheme, while 37.7 per cent purchased in regional areas.</p>
<p>The largest amount of applications for guaranteed loans, 46.1 per cent, were made through mortgage brokers.</p>
<p>Almost 70 per cent of buyers using the Scheme purchased a detached house, with 25 per cent buying an apartment and five per cent purchasing a townhouse.</p>
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One in eight FHB homes bought with First Home Loan Deposit scheme

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<p>The Real Estate Institute of Australia (REIA) has welcomed the announcement of support for first home buyers through a First Home Loan Deposit Scheme.</p>
<p>REIA President Adrian Kelly said the scheme initially announced by the Government and supported by the Opposition will start on 1 January next year and assist first home buyers with their deposit.</p>
<p>“Under the proposal, first home owners will be able to buy their first home with a deposit of 5% compared to 20% which has become the industry norm post the Hayne Royal Commission,” Kelly said.</p>
<p>“Not only will the scheme see first home buyers achieve their home ownership much earlier it will save them a considerable amount of around $10,000 by not having to pay lenders mortgage insurance.</p>
<p>“The scheme addresses two hurdles facing first home buyers – the deposit gap and transaction costs which include mortgage insurance – in a practical way.</p>
<p>“The last time the Federal Government introduced a special measure for first home buyers was the First Home Buyers Boost during the GFC.</p>
<p>“This measure saw first home buyers, as a percentage of total loans financed, increase from 20.2% in October 2008 to 31.4% in May 2009.</p>
<p>“With first home buyers currently representing just 17.9% of total housing loan approvals at the beginning of this year, the measure will be a timely boost not just for first home buyers but for the building sector and the economy in general.</p>
<p>“It is direct assistance like this rather than changes to negative gearing and capital gains tax which provide better outcomes for all.”</p>
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First Home Loan Deposit Scheme

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