First Home Owner Deposit Scheme to be Reallocated

First Home Owner Deposit Scheme to be Reallocated

The First Home Owner Deposit scheme (FHDOS) proved to be a great success with the initial allocation now having been fully subscribed. The Federal Government is still encouraging applicants to apply as some successful applicants are expected to withdraw. However, for all intents and purposes, if you haven’t been allocated a place in the initial scheme, the chances are that you won’t be successful. That’s the bad news. The good news is that the Federal government is will be  allocating another 10,000 places on the 1st July 20202

The first home owner deposit scheme was introduced to make it easier for first home buyers to enter the housing market .

The scheme basically eliminates the need for Home lenders Insurance for borrowings up to 95% of the purchase price of the property representing a significant saving.

The scheme can be used in conjunction with other government initiatives such as the First Home Super Saving scheme, stamp duty concessions and various state government initiatives.

To be eligible for the FHDOS you need to satisfy some basic criteria. The eligibility criteria is as follows -:

  • Available to Australian citizens only who are at least 18 years of age
  • Maximum income of $125000 for singles and $200000 for couples
  • Couples must be married or in a defacto relationship
  • Loans must be for owner occupier homes
  • Applicants must be legitimate first home buyers and not have an interest in any other property

Ten thousand places are likely to be snapped up pretty quickly, so it will be a case of getting n as early as possible for home buyers.

If you would like assistance with organising home finance or applying for a First Home Owner Deposit Scheme place, contact the team at Australian Finance Hub.