The First home Loan Deposit Scheme has opened and applications are being accepted. Here are some common questions about the FHLDS: How many FHLDS loans are available in each state? The government has said that the guarantees won’t be shared out equally between the states; it’s a case of who applies soonest wins. How many FHLDS loans are available each year? There are 10,000 “spots” per year, which means around 10 per cent of the 110,000 first–timers coming onto the ladder each year will strike lucky. How to apply for an FHLDS home loan To apply for a FHLDS home loan you must make an application through bank or lender that is participating in the scheme. A full list of FHLDS lenders is here. Which lenders are offering FHLDS home loans? A full list of lenders that are participating the in the First Home Loan Deposit Scheme is at InfoChoice. Are there any downsides to the FHLDS? As with any help–to–buy scheme, there’s always a downside or two. The FHLDS is no different; here are some of the potential disadvantages to the initiative. As it’s limited to just 10,000 borrowers per year, there’ll be 90,000 or so disappointed hopefuls each year. What are the price caps for the FHLDS? The price caps on eligible properties are well below the average prices in most of Australia’s state capitals. Scroll down on this page to see a full list of all the FHLDS price caps for cities and regions throughout Australia. What are the income caps for the FHLDS? The taxable income thresholds for eligible applicants for the FHLDS are $125,000 for singles and $200,000 per year for couples. What kind of property can I buy through the FHLDS? A modest home or apartment to live in, not for investment purposes. Most of the properties bought with aid from this scheme will possibly be town houses or apartments in city suburbs. Can I buy with small deposit? Having a lower deposit means that the monthly mortgage repayments will be higher for quite some time. Buyers need to work out if they’d be better off saving for a while longer or paying the higher repayments earlier. What are the risks of a small deposit home loan? First–timers with a small deposit will be paying their mortgages for longer and in the event of a sudden price drop, they could find themselves in negative equity. Negative equity is when the amount of outstanding mortgage on a property is higher than the property value. What are the risks of a FHLDS home loan? This scheme could stimulate extra market activity, which could lead to higher property prices and so have the effect of pricing out first–timers, instead of helping them, according to some media commentators. Can I use the FHLDS with other government grants? Yes, you can apply for the FHLDS and other government grants and schemes to assist first home buyers. The government has confirmed that first home buyers can use the FHLDS with some of the other government help schemes already up and running. First Home-Owners Grants help buyers to put up money for their first home purchase. They vary between the states, so always check your state government for details and eligibility criteria. The First Home Super Saver Scheme helps first – timers to save for their deposits by letting them make contributions into their super funds then using them on a home deposit. There are also stamp duty concessions in some states, so if you’re in a state that offers them, these reductions can help with the cost of buying that first home. FULL list of First Home Loan Deposit Scheme price thresholds As of 1 January 2020, the First Home Loan Deposit Scheme is open for applications from eligible first home buyers. Read more about how to apply for the FHLDS at InfoChoice. This article contains a full list of all the price thresholds for the First Home Loan Deposit Scheme. To participate in the scheme you may not purchase a property that is worth more than these thresholds in these regions of Australia. These threshold amounts are set to ensure the FHLDS is only available for the purchase of a modest home, or the purchase of land and construction of a modest home. The maximum property purchase prices under the FHLDS which apply in capital cities, large regional centres and regional areas are: Find out more about how to apply for the FHLDS at InfoChoice. Compare 1800 home loans from Australian banks and other lenders at InfoChoice. InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible. The information contained on this web site is general in nature and does not take into account your personal situation. Do not interpret the listing order as an endorsement or recommendation from us. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.