Applications open for FHLDS (New Homes)

From 3 November, first home buyers (FHBs) will be able to apply to the First Home Loan Deposit Scheme (FHLDS) (New Homes) lending panel lenders to secure a guarantee to build a new home or purchase a newly built home with a deposit of between 5 and 20 per cent of a property’s value.

The FHLDS (New Homes), formerly called the FHLDS New Home Guarantee, was among the measures announced by Treasurer Josh Frydenberg in the 2020-21 federal budget.

The extended scheme provides an additional 10,000 places and government guarantees to FHB loans new homes and newly built homes.

Eligible properties include:

• newly constructed dwellings (e.g. whether a freestanding house, townhouse or apartment)
• off-the-plan dwellings (e.g. whether a freestanding house, townhouse or apartment)
• house and land packages
• land and a separate contract to build a new home.

The FHLDS (New Homes) is means tested, similar to the the original FHLDS.

The additional scheme allocations are available to FHBs that are Australian citizens and at least 18 years old.

These additional guarantees will be available until 30 June 2021.

According to Assistant Treasurer Michael Sukkar, almost 20,000 buyers have accessed the FHLDS to buy a home this year.

Mr Sukkar said the following lending panel members are ready to accept applications for a guaranteed loan to build a new home or purchase a newly built home:

• Commonwealth Bank of Australia
• National Australia Bank
• Australian Military Bank
• Australian Mutual Bank
• Bank Australia
• Bank of Us
• Bendigo Bank
• Community First
• Defence Bank
• G&C Mutual
• Gateway Bank
• IBA Group
• The Mutual
• MyState Bank
• P&N Bank
• People’s Choice
• QBank
• Qld Country Bank
• Regional Australia Bank
• WAW Credit Union

From 9 November 2020 onwards, the following lending panel members will also begin accepting applications:

• Auswide Bank
• Bank First
• Beyond Bank
• Credit Union Australia
• Mortgageport
• Police Bank
• Teachers Mutual Bank

“Eligible first home buyers will also be able to take advantage of the Morrison government’s HomeBuilder program and First Home Super Saver Scheme, and may also be eligible for state and territory grants and concessions,” Mr Sukkar said.

NAB and the CBA opened their waitlists for the FHLDS (New Homes) in October.

[Related: Lenders applaud FHLDS expansion]

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.