First Home Loan Deposit Scheme (FHLDS)

First Home Loan Deposit Scheme (FHLDS)

Have you heard about the First Home Loan Deposit Scheme (FHLDS) 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 FHLDS and written in plain English. You can thank us later!


The evolving COVID-19 crisis has taken the world by surprise. As a first home buyer with a pre-approved FHLDS application, you might be  stressing about how your eligibility is impacted.

At Morgan Finance WA, we can help you secure a 90-day extension if you are in the pre-approval phase and have at least a week to go before the expiry date. Get in touch today to get this started!

Under normal circumstances, you would have to find a property and enter a contract of sale within 90 days of receiving conditional approval for FHLDS.

Due to social distancing measures and bans on public auctions, the Government has allowed for a 90-day extension to this clause. The extension may not automatically apply to you though. It’s up to each lender to decide if they will offer this extension to their applicants!

Lenders we know are currently offering the extension as of April 4th, 2020:

We can reach out to your bank on your behalf and see if they are offering the extension. It pays to make sure you’re in the clear!

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 don’t miss any deadlines.

What is the First Home Loan Deposit Scheme?

 The Australian government introduced the First Home Loan Deposit Scheme to help people enter the property market more easily. It’s not a grant. The Government won’t give you money to help you save up your initial deposit.

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

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


With the FHLDS, the Government is guaranteeing 10,000 low-deposit loans each year, from January 1st 2020. Participating banks and lending institutions are guaranteeing that they won’t charge LMI nor will they increase their home loan interest rates for FHLDS applicants.

Am I Eligible for FHLDS? Can I buy a home with 5% deposit too?

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 (permanent residents are not eligible)
  • At least 18 years of age
  • Income test for singles and couples
  • 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 that is an FHLDS participating lender. There are currently 27 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 Loan Deposit Scheme Banks & Lenders


Major Bank Lenders

  • Commonwealth Bank of Australia
  • National Australia 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)
  • P&N Bank
  • 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 FHLDS application today

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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.

Quick Guide to Refinancing your Home and Investment Loan

Refinancing Home Loan - WinthropWith competitive deals on offer, low interest rates, and a fresh official cash rate cut, refinancing your home and investment is easier now more than ever. If home loan refinance is on your “to do” list this year, it’s imperative that you become conversant with the entire process. Our brief guide contains some helpful information that’ll help you familiarize yourself with some important aspects about refinancing a home and investment loan.

5 Steps to Take when Refinancing your Home

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

  1. Determine the features you want

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 an ideal type of refinance option

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

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

  1. Find the best deal

The whole point of refinancing is to find a better deal than you’re already having. So, you’ve to 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 important step.

  1. Do the math

One important aspect for comparison between the old and the new loan is the interest rate. You are probably opting to refinance so that you can get to pay 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.

You have to note that a lower interest rate may translate to lower monthly payments, but it doesn’t necessarily mean that the new loan is cheaper. Therefore, it’s important to check whether the lower interest rate comes with a longer loan term. 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, then you can consider yourself to have found a better deal. You can also go ahead and compare your new found deal with other deals to ensure that it’s indeed the best on the market.

  1. Explore the costs involved

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


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

Call a trusted and experience Mortgage Broker now

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