As part of the 2020-21 Federal Budget, the Australian Government has committed an additional 10,000 First Home Loan Deposit Scheme (FHLDS) places for the 2020-21 financial year, specifically for eligible first home buyers purchasing new homes.
The ‘New Home Guarantee’ (NHG) has been established to support the Government’s economic stimulus measures and create jobs in the residential construction sector.
The additional 10,000 guarantees will be made available in 2020-21 for eligible first home buyers to build a new dwelling or purchase a newly built dwelling with a deposit of between 5 and 20 per cent of the property’s value (lenders criteria applies). A revised set of property price caps will apply specifically for eligible properties under the NHG.
Eligible NHG properties include:
To be eligible, the borrower purchasing the newly built dwelling must be a first home buyer.
The eligibility criteria for the NHG is the same as the criteria for the FHLDS. Applicants must:
You need to satisfy all these checks to qualify for the NHG. If you don’t meet the requirements for one or more of these checks, or have questions about any of these matters, you should seek advice on your application from a participating lender.
* Only single (individuals) or couples are eligible for the NHG. Couples are defined as those who are married or in a de-facto relationship with each other. Other persons buying together, including siblings, parent/child or friends, are not eligible for the NHG.
** Investment properties are not eligible for the NHG. In the case of active Australian Defence Force member applicant(s), the guarantee is not subject to the owner-occupier requirement after entering into the loan if they cannot meet this requirement because of their duties.
A revised set of property price caps will apply specifically for eligible properties under the NHG and are detailed in the table below.
|Region||NHG property price cap|
|NSW – Capital City and Regional Centre||$950,000|
|NSW – Other||$600,000|
|VIC – Capital City and Regional Centre||$850,000|
|VIC – Other||$550,000|
|QLD – Capital City and Regional Centre||$650,000|
|QLD – Other||$500,000|
|WA – Capital City||$550,000|
|WA – Other||$400,000|
|SA – Capital City||$550,000|
|SA – Other||$400,000|
|TAS – Capital City||$550,000|
|TAS – Other||$400,000|
|Australian Capital Territory||$600,000|
|Jervis Bay Territory & Norfolk Island||$600,000|
|Christmas Island & Cocos (Keeling Island)||$400,000|
NHFIC is currently working with the FHLDS participating panel lenders on the implementation of the NHG. Further information and updates will be provided on the NHFIC website in the near future. In the meantime, please follow us on Twitter @NHFIC_AUS for the latest updates on the NHG and the First Home Loan Deposit Scheme.