The First Home Loan Deposit Scheme (FHLDS)

The First Home Guarantee Scheme: Unlocking Ownership.

Have you heard about the First Home Guranatee Scheme andmortgage brokers perth wondering how you can get a piece of that action? Or perhaps you’re struggling with information overload for first time home buyers and you just want a couple of straight answers about if you are eligible to apply.

In this guide you’ll only get straight answers about the Guarantee Scheme and written in plain English. You can thank us later!

First Home Guarantee Scheme in a competitive Market

The rising market pressures have presented a considerable challenge for First Homeowners as properties’ escalating values surpass their saving capacity. For those entering the housing market for the first time, having a pre-approved First Home Guarantee Scheme can enhance their competitiveness when vying for the property they aspire to purchase.

Under normal circumstances, Purchasing your first home, you would need to have a 20% deposit, or you would have to pay them Lenders Mortgage Insurance (LMI), which can be thousands of dollars. The First Home Guarantee Scheme, originally called the First Home Loan Deposit Scheme, allows just 5% without the Mortgage Insurance. The Guarantee allows First homeowners to enter the market early and have a better chance of purchasing a home. The grant enables the applicant to find a property in a competitive market.

Lenders started offering the Grant to First Home Owners as of April 4th, 2020; it has now been renamed First Home Guarantee. :

We can contact your bank on your behalf and see if they offer the extension should finding a property be challenging and the pre-approval run out of time.

Note: some banks may not approve the extension if you are only a few days away from the expiration day of their pre-approval offer. Get in touch today to make sure you get all the deadlines.

 The Australian Government introduced the First Home Loan Deposit Scheme to help people enter the property market more efficiently. It’s not a grant. The Government won’t give you money to help you save up your initial deposit. They will cover the mortgage insurance to the lenders. An approved loan under this scheme is treated as if the applicant has a 20% deposit.

Instead, the Guarantee helps you save thousands of dollars and start your home loan application with a deposit of as little as 5%.

It all comes down to bypassing the Lender’s Mortgage Insurance, which is charged for any loan with a deposit of less than 20%.

With the FHLDS, the Government is now guaranteeing 35,000 low-deposit loans each year from January 1st, 2020. Participating banks and lending institutions guarantee that they won’t charge LMI or increase their home loan interest rates for applicants.

 Am I Eligible for The First Home Guarantee Scheme?

This scheme is mainly for low to middle income earners who are Australian citizens.

To be eligible for the FHLDS you must meet these criteria:

  • Australian citizen or a permanent resident
  • At least 18 years of age
  • Income test for singles and couples, single applicants income up to $125,000 per year and total income for a couple is $200,000.
  • MUST be a first home buyer
  • You intend to live in the property (it can’t be for investment)
  • If applying as a couple you must be married or de-facto
  • You have 5% deposit saved


Eligibility Checklist for Singles:
Eligibility Checklist for Couples:


How to Apply for the FHLDS

At Morgan Finance WA, we can help you with every step of the application. We can also help you see if you’re eligible and also to choose which lender is the best to go with. We know how hard it can be to decide which lender is the right one for you!

On the other hand, you can also apply directly at a bank or lending institution for the grant participating lender. There are currently 32 lenders which offer guarantees under the Scheme (including a guarantee that they won’t charge higher interest rates for FHLDS home buyers).Cheapest Home loans Kardinya



First Home Gurantee Scheme Banks & Lenders

Major Bank Lenders

  • Commonwealth Bank of Australia
  • National Australia Bank
  • Westpac bank

Smaller Lenders

  • Australian Military Bank
  • Auswide Bank
  • Bank Australia
  • Bank First
  • Bank of us
  • Bendigo Bank
  • Beyond Bank Australia
  • Community First Credit Union
  • CUA
  • Defence Bank
  • Gateway Bank
  • G&C Mutual Bank
  • Indigenous Business Australia
  • Mortgageport
  • MyState Bank
  • People’s Choice Credit Union
  • Police Bank (including the Border Bank and Bank of Heritage Isle)
  • Queensland Country Credit Union
  • Regional Australia Bank
  • Sydney Mutual Bank and Endeavour Mutual Bank (divisions of Australian Mutual Bank Ltd)
  • Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)
  • The Mutual Bank
  • WAW Credit Union

Start your First Home Guarantee Scheme application today, Lenders still have available positions.

Morgage Kardinya

Get in touch with our experienced team at Morgan Finance WA to start your FHLDS application today!


Quick Guide to Refinancing your Home and Investment Loan.

Refinance Your Home Loan

Quick Guide to Refinancing your Home and Investment Loan

Refinancing Home Loan - Winthrop

As interest rates are nearing the end of their upward trend, and a potential rate cut is on the horizon, the prospect of refinancing your home and investment loans becomes more favorable. Considering home loan refinancing in the coming year, you must acquaint yourself with the entire process. Our concise guide provides valuable information to help you understand the critical aspects of refinancing your home and investment loans.

5 Steps to Take when Refinancing your Home Loan

When considering refinance as an option, there are certain steps that you need to take. They include:

  1. Determine the features you want in your Home loan. 

You have to think of the reasons as to why you want to refinance. The main reasons for refinance include:

  • To access equity
  • To get a lower interest rate
  • To switch to a different product presently not provided by your current lender
  • To consolidate a number of loans to one lender

Depending on your reason for refinancing, you have to think of the features that you want with your new loan. Determine whether you want to offset, split, redraws, etc in order to make more value out of your mortgage. Do you want a variable rate instead of a fixed one? Do you want to lengthen or shorten the loan term? All of these are the things to consider beforehand.

  1. Choose The Best Refinance Option: Your Guide To Ideal Choices

There are two types of loan refinance options to choose from. The first one is the internal finance option, which involves switching your loan to a new one while staying with the same lender. The second one is an external refinance option, which consists in switching your loan from an existing lender to another lender.

If your current lender can offer the features you’re looking for, then internal refinancing might be an ideal option. If your current lender doesn’t provide the product you’re interested in or can’t allow consolidation of all your loans, then seeking external refinancing may be in order.


  1. Find the best deal on interest rates and cost. 

The whole point of refinancing is finding a better deal than you already have. So, you must compare the current home loan with other home loans. Once you find a home loan that seems like a good deal, proceed with the following vital step.

  1. Do the math. is the new loan beneficial to you? 

The interest rate is critical for comparing the old and the new loans. You may opt to refinance to get a lower interest rate. In this regard, there’s one piece of the puzzle that you must solve. You have to determine the effect the lower interest rate (promised by the new lender) has on the total cost of your new home loan. Remember, there are government fees and charges to refinance to another lender.

A lower interest rate may translate to lower monthly payments, but it doesn’t necessarily mean the new loan is cheaper. Therefore, checking whether the lower interest rate comes with a longer loan term is essential. This will prevent you from choosing a new loan that increases the total cost of your home loan.

If the total cost of your new home loan is lower than that of the current loan, you can consider yourself to have found a better deal. You can also compare your newfound discount with other arrangements to ensure that it’s indeed the best on the market.


  1. Explore The Loan Costs Involved, What Are The Fees And Charges?

Following the 2011 eradication of mortgage exit fees, borrowers are no longer obligated to pay penalties such as deferred establishment fees when refinancing. Nevertheless, there are other costs that you must explore beforehand. Depending on the new lender’s policy, specific fees may be applicable. Therefore, you must determine what upfront costs you must pay to establish the latest home loan.


The decision to refinance your home and investment loan should come after establishing that the benefits of the new loan far outweigh both the benefits of the existing loan and the costs of the new loan. Hiring a mortgage broker can be wise to ensure you choose the most ideal refinancing option.

Call a trusted and experience Mortgage Broker now

Morgage Kardinya