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!