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First home loan deposit scheme

The new First Home Loan Deposit Scheme (New Homes) update

10,000 additional spots have been released under the First Home Loan Deposit Scheme (FHLDS) for 2020-21, specifically for new homes.

This means, from 2 November 2020, you can apply for the FHLDS, with less than a 20% deposit, 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 FHLDS (New Homes) 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. If this is your situation, best to chat to us about it.
  • We’ll require a minimum of a 10% deposit for the FHLDS (New Homes).
  • There’s been an increase in the property price thresholds for FHLDS (New Homes). 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 on 132 888 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 FHLDS (New Homes) official web page to read up more about it.

First Home Loan Deposit Scheme update

Like most banks, we’ve reserved our spots for the First Home Loan Deposit Scheme (FHLDS) for existing homes and new homes that don’t meet the criteria for FHLDS (New Homes). More spaces will be released on July 1 2021. However, spaces may come available before then. We may receive additional places before then so give us a call on 132 888 and we can have a chat to you about whether we have any available or put you on a waiting list. 

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

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 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%.

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, call us on 132 888.

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

What does your bank invest in?

 If the answer includes fossil fuels, weapons, tobacco or gambling, it's likely that the interest you are paying on your home loan is supporting these industries.

Divestment makes a difference

Joining a bank that doesn't fund harmful industries, such as fossil fuels, is a tangible step towards a more sustainable future.

You can help make a positive impact

By moving your money to Bank Australia, you’re ensuring your money is part of funding a future aligned to your values: renewable energy, not for profits, sustainable and affordable housing and much more. 

Want more information?


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 home buying hub.