First home loan deposit scheme

First home loan deposit scheme

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First Home Loan Deposit Scheme

Helping first home buyers get into their first home sooner has always been at the forefront of Sydney Mutual Bank's mission. Being selected to provide Government guaranteed loans under the First Home Loan Deposit Scheme is something we are very proud of.


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 on low and middle incomes to purchase a home with a deposit of as little as 5 per cent.

The Scheme will support up to 10,000 home loans each financial year, starting from 1 January 2020, through a panel of participating lenders including Sydney Mutual Bank.


Are you eligible for the First Home Loan Deposit Scheme?

Applicants under the Scheme will be subject to eligibility criteria, including criteria in relation to income thresholds and property prices.

  • Australian citizens who are at least 18 years of age. Permanent residents are not eligible.
  • Singles with a taxable income of up to $125,000 per annum and couples with a taxable income of up to $200,000 per annum. Incomes will be assessed for the financial year preceding the financial year in which the loan is entered into. 
  • Couples are only eligible for the scheme if they are married or in a de-facto relationship. Other persons buying together, including siblings, parent/child or friends, are not eligible for the Scheme. 
  • Applicants must have a deposit of between 5 and 20 per cent of the property’s value. 
  • Loans under the Scheme require scheduled repayments of the principal of the loan for the full period of the agreement. If the loan relates to the purchase of vacant land for the construction of a house on the land, the loan may be an eligible loan even if the terms of the loan agreement permit interest-only repayments for a specified period.
  • Applicants must intend to move into and live in the property as their principal place of residence (i.e. they must be owner occupiers).
  • Applicants must be first home buyers who have not previously owned or had an interest in a residential property either separately or jointly with someone else (this includes residential strata and company title properties, regardless of whether it was an investment or owner-occupied property and whether it was ever lived in).

You can check your potential eligibility on the NHFIC website.


What are the property price thresholds?

To ensure the Scheme is only available for the purchase of a modest home, or the purchase of land and construction of a modest home, property price thresholds (maximum property purchase price under the Scheme) will apply in capital cities, large regional centres and regional areas.

NHFIC has developed a tool to help first home buyers find out the property price threshold for the suburb in which they are looking to purchase a property. Look up your suburb or postcode on the NHFIC website to see the property price threshold.


Additional information


Why choose Sydney Mutual Bank?

  • We've been around for more than 55 years. We're safe and secure, with a network of 25 branches where you’ll receive a warm welcome from people who are more generous with their time.
  • We’re not like the big banks. We are customer owned and by putting you first, our investment is in you without the conflict of interest between customers and shareholders.
  • We are not behind big banks in terms of facilities. We have Internet Banking, Mobile Banking App, Apple & GooglePay and an Australia-based call centre.

How do you apply?

Applications open for Sydney Mutual Bank on 1 February 2020. To register your interest or if you would like to find out more about how we can help you buy your first home with a smaller deposit, please fill out the form below.

  • Nicole

    Edgewater WA

    Sydney Mutual Bank helped us secure our first dream home in Perth, Western Australia. Their outstanding customer service, care and guidance made the whole process of us securing our first home a smooth ride. What is even more commendable is that all of this was done from over the east with no problems. Importantly their low interest rates beats the competitors by a huge margin and we have no doubt in saying we will stay with Sydney Mutual Bank for all our banking and highly recommend this Mutual Bank to everyone in Australia.

    Nicole securing our first home

  • Jason

    Matraville NSW

    My family have been members of Sydney Mutual Bank for over a decade. We’re a pretty busy family, so dealing remotely and outside of normal hours which can often be a challenge is never a problem with the team at Sydney Mutual bank. In particular, the setup and ongoing management of our complex mortgage loan requirements have been a positive experience via Sydney Mutual Bank’s highly capable mobile specialists and support team behind the scenes. I have no hesitation in often recommending Sydney Mutual Bank to friends, colleagues and family.

    Jason complex mortgage loan requirements

  • Greg

    Richmond NSW

    As a long standing member of over 40 years with the Sydney Mutual Bank they have provided me with outstanding customer service and now that my family are also part of the Sydney Mutual Bank they have continued to receive the same efficiencies and personalised service that I have experienced over the 40 years. 

    We have no hesitation in recommending the Sydney Mutual Bank for all their banking facilities, services and friendly staff.

    Greg banking facilities