5% Deposit Scheme for First Home Buyers

Are you a first home buyer looking to get into the market? Well look no further, as Christine explains, find out if you are eligible to claim any benefits and what you could save by taking advantage of these benefits.


  • Are you a first home buyer?
  • Are you eligible to claim any benefits?
  • Are you wanting to see how much can you can save?

There are currently exemption and concession benefits for stamp duty in place for first home buyers, on top of these benefits, as of the 1st January 2020, the Australian Government has introduced a further scheme to benefit First Home Buyers.

This scheme is called the First Home Loan Deposit Scheme or FHLDS.

The Australian Government has introduced this scheme as an incentive to support eligible first home buyers to purchase their first home sooner.

The FHLDS enables eligible first home buyers to purchase their first home with a deposit as little as 5% with the balance of the deposit up to the value of 20% to be guaranteed by the government.

Just like the current First Home Buyers Assistance Scheme for stamp duty, the FHLDS has eligibility requirements. Below are the main eligibility requirements for first home buyers to be aware of, including but not limited to:


–          Singles – income for the previous financial year must not be more than $125,000.00

–          Couple – income for the previous financial year must not be more than $200,000.00

Prior Ownership

–          Applicant/s must not have previously owned property in Australia (even for investment purposes)

–          Applicant/s must not have previously had an interest in a Lease of land in Australia with a term of 50 years or more

–          Applicant/s must not have previously had a company title interest in land in Australia


–          Applicant/s must be a current Australian citizen

–          The scheme is not open to permanent residents who are not Australian citizens


–          Applicant/s must be the age of 18 or over

Deposit requirement

–          Applicant/s must have at least a 5% deposit of the value of the property saved as a deposit (if a couple, the combined amount between the couple will need to be 5%). The scheme is not available to the applicant/s who have savings of 20% or more of the value of the property

Owner occupied

–          Applicant/s must live in the property within 6 months from the date of settlement and must continue to live in the property as their principal place of residence.

–          Should the applicant/s not remain in the property as their principal place of residence and have the property tenanted, the home loan will cease to be guaranteed by the scheme

Type of property

–          This scheme is only available to applicant/s purchasing either an existing dwelling or a new-build dwelling that is purchased under a house and land package / off the plan (ie it is not available for vacant land purchases)


–          Purchase price not to exceed $700,000.00

Please note it is important to seek further advice from your broker or financial advisor when applying for the FHLDS as each individual lender will have their own eligibility requirements.

Don’t Forget!

The other First Home Benefits available if you are purchasing your first home including:-

  • First Home Owners Grant
  • First Home Buyers Assistance Scheme (full or partial exemption on stamp duty)



Christine is a licensed conveyancer and Justice of the Peace at Coutts’ Narellan office. She is highly efficient and is able to assist clients with matters concerning; the sale and purchase of residential and commercial property, retirement village contracts, put & call options and family transfers.

Christine communicates clearly with her clients, thoroughly walking them through every stage of the buying and selling process to ensure that their experience is as stress free as possible. She also makes a point of being available to her clients, when they need her, throughout the entirety of their matter.




As a Licensed Conveyancer, Carina specialises in property law. She has over 20 years experience in conveyancing and is the perfect person to help get you into your first home today!

For further information please don’t hesitate to contact:

Carina Novek
Property Manager
1300 268 887

Christine Johnsen
Licensed Conveyancer & JP
1300 268 887

Contact Coutts today.

This blog is merely general and non specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.