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Budget Expands FHB Scheme

Treasurer Josh Frydenberg confirmed in this week’s Federal Budget that another 10,000 places will be added to the First Home Loan Deposit Scheme (FHLDS).

The incentive allows first-home buyers to buy a new home with a deposit of 5% without paying lenders mortgage insurance (LMI), with the Government guaranteeing the remaining 15%.

The FHLDS consists of 10,000 spots in each wave and the last wave saw the caps on the value of eligible new homes lifted to $950,000 in Sydney and $850,000 in Melbourne. In the other capital cities participants could buy properties worth $550,000.

The Budget also lifted the maximum amount of superannuation contributions that can be released under the First Home Super Saver Scheme to be used to save for a first-home deposit – from $30,000 to $50,000.

“It is about giving people the opportunity to get into the market,” says Frydenberg.

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