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First Home Loan Deposit Scheme

First Home Loan Deposit Scheme

Bank Australia is helping first home buyers as an approved lender for the Australian Government’s First Home Loan Deposit Scheme.


10,000 places have been released under the First Home Loan Deposit Scheme (FHLDS) for 2021-22. These places support eligible first home buyers to purchase a new or existing home.

This means, from 1 July 2021, you can apply for the FHLDS, with a deposit of between 5% and 20%, to purchase a home and you won’t need to pay Lenders Mortgage Insurance (LMI).

There are also 10,000 additional spots for 2021-22 for eligible first home buyers who want to build or buy a new home. This is called the New Home Guarantee. You can read more about this below.

And, if you’re a single parent, you may be able to apply for one of the 10,000 spots under the new Family Home Guarantee. You can read more about the Family Home Guarantee (FHG) below.

You could be a home owner before you know it.  

We know how hard it is to save for a deposit when you’re renting, working and studying. That’s why we’ve signed on as an approved lender to the Australian Government’s first home buyer initiative, the ‘First Home Loan Deposit Scheme’.

The First Home Loan Deposit Scheme allows eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5%. The scheme removes the (often significant) cost of Lender’s Mortgage Insurance (LMI) which is something you would usually pay if you have a deposit of less than 20%. This is because NHFIC guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer’s home loan.

You can check your eligibility below or head to the Government’s eligibility tool to answer a series of questions.

If you have any questions, please contact us.

The New Home Guarantee (NHG) update

10,000 additional places have been released under the New Home Guarantee (NHG) for 2021-22.

This means, from 1 July 2021, you can apply for the FHLDS, with a deposit between 5% and 20%, to purchase a new home and you won’t need to pay for Lenders Mortgage Insurance (LMI).

Here’s what you need to know,

  • The New Home Guarantee (NHG) includes newly constructed dwellings, off the plan dwellings, house and land packages, and land and a separate contract to build a new home.
  • It can also include homes with substantial renovations or knocked down and rebuilt by the vendor. If this is your situation, best to chat to us about it.
  • We’ll require a minimum of a 5% deposit for the New Home Guarantee (NHG).
  • There’s been an increase in the property price thresholds for the New Home Guarantee (NHG). Check out what the price cap is for your metropolitan or regional area.
  • All of the other borrower eligibility requirements still apply. You can read more about them below or use this tool to find out if you’re eligible.

Got questions about the FHLDS (New Homes)? Give us a call and selection option 3 to have a chat to our lending team today.

If you would like to do more research, head over to the New Home Guarantee (NHG) official web page to read up more about it.

To be eligible, you need to tick a few boxes. Here’s the requirements we need about you:

  • You are purchasing a home to live in yourself or with your spouse or de factor partner
  • You’re a first home buyer
  • You’re aged over 18
  • You’re an Australian citizen
  • You earn less than $125k in a tax year or, as a couple, $200K

There’s also a few other requirements, depending on what you want to buy. These include:

  • The property you want to purchase is a residential property
  • If you’re building, the loan also includes construction costs to build a residential property on the land you want to buy
  • You stay under the price caps for each state and region.
  • You must apply for a Principal and Interest loan (no Interest-Only loans)

By taking out a home loan with us you'll be part of a customer-owned bank that delivers better value for customers and the positive projects they believe in.

Our profits are returned to customers through better rates and fees, and our investments are used to create positive social and environmental change – such as through our Impact Fund, where we donate 4% of our after-tax profits. Learn more about us.

Want more information?

The Family Home Guarantee (FHG) Scheme

The Australian government has announced a new program called the Family Home Guarantee (FHG) which provides eligible single parents with dependants the opportunity to build a new home or purchase an existing home with a deposit of 2 per cent, subject to the individual’s ability to service a home loan.

From 1 July 2021, 10,000 Family Home Guarantees will be made available over four financial years.

Find out more


Explore our range of calculators to work out your repayments, compare loans and more.

Find out more


When submitting your application, you will need to confirm:

  • You are at least 18 years of age.
  • You are an Australian Citizen or permanent resident of Australia.
  • Your are currently in receipt of regular income.
  • You have maintained a good credit history for the past 5 years.

What you'll need to complete a pre-check:

  • Income - gross (before tax) and net salary (after tax), employment details and other income (from shares, rental property, etc.)
  • Assets - approximate values of property, vehicles, savings, superannuation, etc.
  • Liabilities - loan balances, repayment amounts, credit card or overdraft limits, etc.

To complete the full application, you will need a form of ID if you're not a Bank Australia customer. To verify your identify online please have one or more of these documents with you:

  • Australian Drivers Licence
  • Australian Medicare card
  • Passport
Explore our home buying hub

Want more information about buying a home? Explore our buyers hub.

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