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As an approved lender for the Australian Government’s First Home Loan Deposit Scheme, we can help eligible first home buyers to purchase a home with a deposit of as little as 5%, and the added bonus of not having to save for Lenders' Mortgage Insurance (LMI).
The First Home Loan Deposit Scheme places with the non-major lenders have now been reserved for the 2020-21 financial year. If you are a First Home Buyer interested in applying for the Scheme we are currently still taking applications and placing them on a wait list as places may become available over the coming weeks where existing applicants with a reserved place may not purchase a property.
To be eligible, you need to check off the following criteria:
- You are purchasing a home to live in yourself or with your spouse or de facto partner
- You’re a first home buyer. You have never owned a freehold interest in real property in Australia, an interest in a lease of land in Australia with a term of 50 years (or more), or a company title interest in land in Australia.
- You’re aged over 18
- You’re an Australian citizen
- You earn less than $125,000 in the previous tax year as an individual or, less than $200,000 as a couple
- You have saved a 5% deposit plus standard fees and charges (e.g. stamp duty).
Depending on what home you wish to buy, there are a few other requirements, including:
- The property is a 'residential property'.
- Limits apply to the maximum property purchase price for each state and region the property is located in. For example, if you live in regional South Australia, the price cap is $250,000.
- You are the sole registered owner/s of the property when it is the settlement date of your home loan.
- The property is an established dwelling or a new-build dwelling that is purchased under a house and land package.
- If the home is not a new build under a house and land package, you must have a separate contract to build the home.
- You can only receive the First Home Loan Deposit Scheme Guarantee once.
- There is a limited allocation of guarantees available under this scheme, which once taken up, the guarantee will not be available until a new allocation is released.
- Applications are subject to credit approval. Terms, conditions, fees, charges and lending criteria apply and are available upon application. Home loans are issued by People’s Choice Credit Union, a trading name of Australian Central Credit Union Ltd ABN 11 087 651 125 AFSL/Australian Credit Licence 244310. Contact us on 13 11 82 with any questions or visit your nearest branch to talk to a consultant.
Buying a home on your own or with someone else?
Take the test to see if you're eligible for the First Home Loan Deposit Scheme.
To read more about the eligibility requirements, click here.
Check out the fact sheet from the NHFIC (National Housing Finance and Investment Corporation) to read more about the benefits and requirements of the First Home Loan Deposit Scheme.
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People’s Choice Credit Union is collecting the above information so that we may respond to your enquiry and provide information in relation to products and services we provide. We will only use this information, unless you are already a member or subsequently decide to obtain a service or product from us, to respond to your enquiry and to contact you from time to time to provide you with information about services and products which may be of interest to you (including products and services of third parties). We may not be able to contact you if you do not provide to us this information. You can opt out of receiving direct marketing from us at any time. We disclose your personal information to relevant members of our staff. We may also disclose your personal information to agents, contractors, government agencies and bodies who assist us in our dealings with you. Our Privacy Policy (which you can obtain at this link, in branch or by contacting us on 13 11 82 and asking for a copy) contains more information on how you can access and correct your personal information, how we use your personal information (including how to opt out of marketing), how to complain if you believe we’ve breached our privacy obligations, and how we deal with complaints. It also provides more detail on how we manage and protect your personal information if you are interested. People's Choice address is 50 Flinders St, Adelaide, 5000.
Most popular questions...
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Do I have to pay LMI in the First Home Loan Deposit Scheme?
No. The First Home Loan Deposit Scheme allows first home buyers with deposits as low as 5% to get a home loan without paying Lenders' Mortgage Insurance (LMI) fees.
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When is the First Home Loan Deposit Scheme available?
People's Choice Credit Union launched the First Home Loan Deposit Scheme in February 2020.
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Is there a property price limit under the First Home Loan Deposit Scheme?
Yes. The First Home Loan Deposit Scheme applies property purchase price thresholds, which are based on where the property is located. You can check the property price threshold for your property’s suburb and postcode using NHFIC’s property price threshold tool.
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Who is eligible for the First Home Loan Deposit Scheme?
You can check your potential eligibility on the NHFIC website
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How do I apply for the First Home Loan Deposit Scheme?
People’s Choice will offer the Scheme from 1 February. To speak to one of our Home Loan Advisors, complete the enquiry form here.
More questions...
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What is the First Home Loan Deposit Scheme?
The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase a home sooner.
It does this by providing a guarantee that will allow eligible first home buyers to purchase a home with a deposit of as little as 5 per cent (lender's criteria apply). More information can be found in NHFIC Fact sheet
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How does the First Home Loan Deposit Scheme work?
The Australian Government has introduced the First Home Loan Deposit Scheme to assist eligible first home buyers to purchase a home sooner. It does this by providing a guarantee to participating lenders that will allow eligible first home buyers to purchase a home with a deposit of as little as 5 per cent and the additional benefit of not having to save for lenders mortgage insurance (LMI).