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First Home Loan Deposit Scheme (New Homes)

In the 2020-21 Federal Budget, the Australian Government announced an additional 10,000 First Home Loan Deposit Scheme (FHLDS) places for the 2020-21 financial year, specifically for eligible first home buyers building or purchasing new homes. These additional places are known as FHLDS (New Homes).

We're currently accepting applications for FHLDS (New Homes) for eligible first home buyers looking to build or purchase a new home during this financial year (ending 30 June 2021).

You can find more information about FHLDS (New Homes) and eligibility requirements on the National Housing Finance and Investment Corporation (NHFIC) website.

We're not currently accepting new requests to join our First Home Loan Deposit Scheme waitlist for customers looking to buy homes that do not meet FHLDS (New Homes) requirements. If you're already on our waitlist, our Home Lending Specialists can guide you through the application process and provide you with available options – see below for contact details. 

You could buy your first home sooner

Saving a deposit for your first home can be challenging. That’s why we're proud to work alongside the Australian government on the First Home Loan Deposit Scheme to help more first home buyers realise their home ownership goals.

Along with our flexible home loans, competitive interest rates and award-winning Property app, the First Home Loan Deposit Scheme is another way we can help first home buyers get into their first home.

What is the First Home Loan Deposit Scheme?

The First Home Loan Deposit Scheme is an initiative from the Australian Government designed to support eligible first home buyers purchase a home sooner.

NHFIC provides a guarantee for eligible first home buyers on low and middle incomes so that they can purchase a home with a deposit of as little as 5%.

The Scheme supports up to 10,000 home loans each financial year through a panel of participating lenders, including the Commonwealth Bank.

Why this is great news for you

If you want to buy a property today you typically need to save at least 20% of the property’s value in order to secure a home loan and avoid paying Lenders Mortgage Insurance or Low Deposit Premium or to avoid relying on a guarantor.

Under the First Home Loan Deposit Scheme, you're required to contribute a minimum of 5% of the property’s value towards the deposit. The NHFIC then provides a guarantee to the lender covering up to 15% of the property’s value.

Note: We're not currently accepting new requests for the First Home Loan Deposit Scheme, however we do have a waitlist open for the FHLDS (New Homes) – please refer to the eligibility requirements below. If you're already on our First Home Loan Deposit Scheme waitlist, our Home Lending Specialists can guide you through the application process and provide you with available options – see below for contact details. 

Are you eligible for the First Home Loan Deposit Scheme?

For the First Home Loan Deposit Scheme, you can check your potential eligibility on the NHFIC website. The following conditions will generally apply:

  • Australian citizens who are at least 18 years of age. Permanent residents are not eligible
  • Applicants must not have previously owned or had an interest in a residential property, either separately or jointly with someone else (this includes residential strata and company title properties, regardless of whether it was an investment or owner-occupied property and whether it was ever lived in)
  • Only singles with a taxable income of up to $125,000 per annum and couples with a combined taxable income of up to $200,000 per annum may be eligible
  • Couples are only eligible for the Scheme if they are married or in a de facto relationship. Other persons buying together, including siblings, parent/child or friends, are not eligible
  • The Scheme will only apply to Owner Occupied home loans paid on a principal and interest basis (property investment and Interest Only loans are excluded). If the loan relates both to the purchase of vacant land to the construction of a house on the land, the loan may still be an eligible loan even if the terms of the loan agreement permit Interest Only payments for a specified period
  • Applicants must have a deposit of between 5% and 20% of the property’s value
  • Your maximum property purchase price is subject to the suburb and postcode of your new property. You can check the property price threshold for your property’s suburb and postcode using NHFIC’s property price threshold tool

You can only receive the Government Guarantee once. If you have entered the Scheme but were unable to purchase a property in time, you can request another place.

Are you eligible for the FHLDS (New Homes)?

For the FHLDS (New Homes) eligibility requirements, you can check your potential eligibility on the NHFIC website. In addition to the First Home Loan Deposit Scheme eligibility requirements listed above, the following conditions will generally apply:

  • Applicants must build or purchase a new home including:
    • newly constructed dwellings
    • off-the-plan dwellings
    • house and land packages
    • land and a separate contract to build a new home.
  • A newly constructed dwelling refers to properties that completed construction on or after 1 January 2020 and have not previously been rented, leased or lived in. You can learn more about these requirements on the NHFIC website.
  • An ‘off the plan’ purchase is one where you enter into a contract of sale dated on or after 7 October 2020 for the purchase of a property where:
    • the title to the property has not yet been issued, or
    • if title to the property has been issued, it cannot yet be legally occupied, for example the building of the property has not yet finished.
  • A house and land package is where you build a new home by entering into a contract of sale to purchase land from the same person (or persons within the same corporate group) as the person who you enter into a contract with to build your new home, and:
    • the building contract is dated on or after 7 October 2020; and
    • construction is scheduled to commence within six months of entering into the contract and complete within 24 months of starting.
  • A land and separate contract to build home is where you build a new home by entering into a contract of sale to acquire land from a person who is different to the person you enter into a contract with to build your new home, and;
    • the building contract is dated on or after 7 October 2020; and
    • construction is scheduled to commence within six months of entering into the contract and complete within 24 months of starting.
  • Separate property price thresholds apply for the FHLDS (New Homes). You can check the property price threshold for your property’s suburb and postcode using NHFIC’s property price threshold tool.

You can only receive the Government Guarantee once. If you have entered the Scheme but were unable to purchase a property in time, you can request another place.

How do you apply?

To apply, speak to a CommBank Home Lending Specialist who will guide you through the application process. Simply book an appointment online, call 13 2221, or visit a lender at your nearest branch.

1. Prepare

While you're on our waitlist, talk to our Home Lending Specialists about how to prepare for when you are provided a place.

2. Submit your application

Our Home Lending Specialists will help you with the documents required, lodge them on your behalf and keep you up to date on the progress of your application.

You will need to purchase your home within 90 days of approval on the Scheme.

3. Move in

Move in and enjoy your new home.

Book a time with a Home Lending Specialist, instantly 

Other first home buying assistance grants & concessions

First Home Owners Grant

The First Home Owner Grant is a government scheme that was introduced in 2000 to offset the effect of Goods and Services Tax (GST) on buying or building a home. It’s a one-off payment for eligible first home buyers who purchase or build a residential property to live in. Eligibility isn’t based on financial considerations such as your income.

To find out how it works, visit the First Home Owners Grant website.

Stamp duty concessions

Stamp duty is a tax levied by state or territory governments on certain purchases, including buying a home, land, or investment property. Depending on your state or territory, you may be eligible for concessions as a first home buyer.

In NSW from 1 August 2020 and for a 12-month period, the threshold above which stamp duty is charged on new homes for first home buyers increased from $650,000 to $800,000, with the concession reduced on higher values before phasing out at $1 million. The stamp duty threshold on vacant land rose from $350,000 to $400,000 and phases out at $500,000. Note: these threshold changes only apply to newly built homes and vacant land in NSW.

The First Home Super Saver Scheme

The First Home Super Saver Scheme allows you to save money for your first home using your superannuation fund. This scheme, run by the Australian Taxation Office (ATO), helps first home buyers save faster by allowing them to withdraw voluntary super contributions they’ve made to their super.

For more information, visit the ATO website.

We're here to help

We understand that saving a deposit for your first home can be challenging and we’re here to help. When applications open, speak with a Home Lending Specialist to see what options are available to you. Call 13 2224 8am to 8pm (Sydney time), book an appointment online, find a mobile lender or visit your nearest branch.

Things you should know

Applications are subject to credit approval. Full terms and conditions will be set out in our loan offer, if an offer is made. Fees and charges are payable. Once our allocation of loans under the scheme has been exhausted, standard lending approval criteria, including the need for LMI and LDP where appropriate, will apply.

To find out more about the First Home Loan Deposit Scheme, download the Australian Government's FHLDS Scheme Information Guide. You can also download the First Home Buyer Declaration.