First Home Loan Deposit Scheme extended

As many as 10,000 more first home buyers will be able to purchase a home sooner under an extension of the First Home Loan Deposit Scheme, announced in the Federal Budget on 6 October.¹

The initiative announced in the Budget forms part of the Government’s economic recovery plan in the wake of the impacts of COVID-19.

The Australian Government said the First Home Loan Deposit Scheme had helped almost 20,000 first home buyers purchase a home with a deposit as low as 5% in 2020.

The Government estimates that the scheme changes will enable another 10,000 first home buyers to purchase a home sooner, with an additional 10,000 places provided from 6 October 2020 to support the purchase of a new home or a newly built home.

The extension of the scheme will be available until 30 June 2021.

Entering the housing market

Treasurer Josh Frydenberg said the Government initiative recognised that “saving a deposit for a home had become a more significant barrier to entering the housing market than the ability to service a home loan.”

As well as the First Home Loan Deposit Scheme Eligible, first home buyers may also be able eligible for the First Home Super Saver Scheme and HomeBuilder, as well as state and territory grants and concessions.

Please note that this announcement is yet to be legislated and may be subject to change. You can access all Budget papers here, and access QSuper’s summary of Budget announcements here.

1. Source: Government media release. Accessed 6/10/2020.