First Home Loan Deposit Scheme
Finance,Financial Management

The Benefits of the First Home Loan Deposit Scheme:

The First Home Loan Deposit Scheme (FHLDS) is a government-backed scheme that was introduced in Australia in 2019. The scheme is designed to help first-home buyers purchase a home sooner by providing them with a government-guaranteed loan.

The scheme has helped many first-home buyers who would not have been able to purchase a home otherwise.

If you are thinking of buying a first home, you should definitely consider the First Home Loan Deposit Scheme. In this article, we will explain the scheme in more detail and outline the benefits that it can offer you.

The deposit guarantee:

The first home buyers loan provides a guaranteed deposit to eligible borrowers when they purchase their first home. The deposit guarantee means that if you cannot repay your loan, the government will cover your repayments instead of your lender having to foreclose on your property or repossess it. This means that even if you have bad credit or no savings, you may still be able to secure financing for your first home purchase through this scheme.

The minimum deposit requirement:

A traditional first home deposit is usually around 20% of the property price. However, one of the advantages of using FHLDS is that there is no minimum deposit requirement at all! This means that even if you have very little money saved up, you can still get your foot on the property ladder through this scheme.

No deposit is needed:

One of the biggest benefits of the First Home Loan Deposit Scheme is that no deposit is required for your loan application. Under normal circumstances, most lenders require at least a 20% down payment for their mortgage loans; however, because of the government guarantee on FHLDS loans, lenders are willing to accept lower deposits from borrowers.

First Home Loan Deposit Scheme

Lower interest rates:

The FHLDS offers lower interest rates than other types of home loans. This means that you can borrow more money for your deposit and for your monthly repayments, which will make it easier for you to purchase your dream home.

Freedom and flexibility:

The FHLDS gives you the freedom to buy a home in any location that you choose. You don’t have to worry about how much deposit you can afford or what type of property you want to buy. As long as it meets the eligibility criteria, you are free to purchase any property that you want.


Ultimately, the idea behind the First Home Loan Deposit Scheme is to help first-home buyers get their foot in the door. With first-home buyer grants and schemes being introduced, there has never been a better time to buy than now. Check out the First Home Loan Deposit Scheme and see if it can take you from renting to owning.

Author Image
Ethan Keane