PERTH & MANDURAH 08 9367 4222

08 9367 4222

On Tuesday March 29, The Australian Federal Government announced the 2022-23 Budget. In our industry of mortgage broking and finance, the main talking point is the update to The First Home Loan Deposit Scheme. This is an Australian Government initiative to assist First Home Buyers and in some cases single parents in purchasing their home sooner.

Previously 10,000 First Home Loan Deposit Scheme places were available to eligible first home buyers however in the Federal Budget that was handed down last week it was announced that an additional 40,000 places will be available in the 2022/23 financial year raising the total to 50,000 places. This allocation will be shared between first home buyers and single parents buying or building a home to live in. The advantage of these additional placements is obvious. It means more people in these two categories will have access to the government scheme allowing them to purchase a property much sooner than they previously would have.

Here is an update on what is involved in the First Home Loan Deposit Scheme:  

Australian Citizens who are a first home buyer or a single parent

When applying to a lender for a home loan with less than a 20% deposit, people need to pay Lenders Mortgage Insurance (LMI). This is an additional cost to the homeowner which means they require additional savings for a loan to be approved.

If you are eligible for the government scheme the need for Lenders Mortgage Insurance is removed as the government is guaranteeing the home loan due to the First Home Loan Deposit Scheme.

There are two major banks and quite a number of smaller lenders that offer extended lending solutions for people wanting to access this scheme. Speak to your Launch Finance broker to find out more.

In WA the maximum purchase price is $500,000.  

All of the Launch Finance brokers are experts in this field and understand the rules and guidelines of the First Home Loan Deposit Scheme. They can guide you through the process to see if you are eligible.

Speak to one of our brokers today on (08) 9367 4222 or email [email protected] and our award-winning team can help you work towards purchasing your investment property.