Newcastle in unique situation to benefit from FHLDS

First home buyers in Newcastle and Lake Macquarie are in the unique position of having the Sydney limit for the first home loan deposit scheme but benefit from lower median house prices.

First Home loan deposit scheme

The federal government’s first home loan deposit scheme will release 10,000 new spots in the scheme for the purchase of an established home on 1 July 2021. This scheme allows eligible first home buyers to purchase their first home with a 5% deposit and without the cost of having to pay lenders mortgage insurance.

The Newcastle and Lake Macquarie Local Government areas, which are deemed under the scheme as being metro and therefore attracting the higher cap of $800,000 – almost every suburb in Newcastle and Lake Macauarie would offer options to purchase a family home within this.

Whilst obtaining a spot from the Commonwealth Bank and the National Australia Bank may prove difficult if you are not already on their waiting lists, there are many smaller lenders participating in the scheme where access has traditionally been a little easier. The major difference between the smaller lenders and the two majors is that with the smaller lenders you need to lodge an application and have it pre-approved subject to you finding a property.

You may be eligible for the scheme if:

You are an Australian Citizen (bit late to work on this if you are not already)

Have a taxable income of less than $125,000 for singles or $200,000 combined if applying as a couple – you will need to get your tax done as soon as the financial year ends as you will be required to supply your ATO Notice of Assessment for the 2021 financial year – this is the letter the tax department sends you, to tell you you are gettting a refund or you owe them money!

Be able to demonstrate 5% genuine savings – this can either be cash savings or you may be able to use your rental history

And never have owned a home before in any state or territory of Australia.

Occupy the property as your owner-occupied home.

Click here to check the cap on your postcode.

In NSW 1st home buyers receive a full stamp duty exemption on purchases of established homes upto $650,000, therefore if using the scheme to purchase a home upto the $800,000 cap some stamp duty will still be payable and first home buyers will need to be able to demonstrate that they have sufficient funds to cover this cost.  Until 31st August 2021, the NSW Government is offering a full stamp duty exemption on purchases of new properties upto $800,000.

If you meet the above criteria then your time to act is now.  Give myself, Margaret Godfrey, a mortgage broker in Newcastle a call and I can explain your options, the process and help you apply.  Either send me an email to or give me a call on 0451 471 061