First Home Loan Deposit Scheme (FHLDS) - eligibility

Discussion in 'Loans & Mortgage Brokers' started by Niche, 23rd Dec, 2019.

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  1. Niche

    Niche Well-Known Member

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    Hi all,

    Just a quick question that I am hoping someone can enlighten me around eligibility for the FHLDS.

    I currently have a property just in my name where my partner is not on the loan or title. Does this mean that she would be eligible for the FHLDS if she got a loan in just her name or would she be ruled out because of me.

    I have tried looking on the government website and it looks like she may qualify but it is a little vague.

    Thanks in advance
    Nick
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    This is a legal question really. I don't know the answer off the top of my head but would imagine where one spouse is not a first home buy the other spouse would not qualify. Check with your conveyancing lawyer
     
  3. Pash81

    Pash81 Well-Known Member

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    Husband is Australian Citizen, wife is permanent resident. Ideally they are not eligible for FHLDS.

    If the husband apply for FHLDS alone but wife just acts as a guarantor to meet the serviceability for the loan, will he he eligible for FHLDS?
     
  4. Lindsay_W

    Lindsay_W Well-Known Member

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    You haven't explained why they're not eligible for the FHLDS?
    Is it because the wife has owned property previously? If so then no they won't qualify
     
  5. Pash81

    Pash81 Well-Known Member

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    Not eligible because wife is not Australian citizen yet.
     
  6. Lindsay_W

    Lindsay_W Well-Known Member

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    I see, makes sense now I should've read your inital post in full sorry
    Both borrowers need to be Aus citizens to qualify - even if only guarantor for the loan
     
  7. tobe

    tobe Well-Known Member

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    No not eligible. Both need to be au citizens. It’s annoying. Diferent rules than fhog.
     
  8. Curious Johnny

    Curious Johnny Member

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    Is there any way to obtain more information about this scheme ? The information seems to be quite lacking. For example, there is a list of banks that offer a place in the scheme, but no information about what products they offer as part of the scheme ? Also, I would imagine the scheme would be pretty popular, registrations have already been open, are there spots still available ? Or do certain banks have certain allocations and you have to shop around ? Didn't want to start a new thread about it, thread starter, if I am hijacking I will delete my post, thanks.
     
  9. Morgs

    Morgs Well-Known Member Business Member

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    There are still some spots with the smaller lenders - it is best in first served & each lender have different processes around going about reserving a spot, in addition to different credit policies for assessment and of course different products/rates :)

    Some of them have transparency of their products & process on their websites.
     
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  10. Lindsay_W

    Lindsay_W Well-Known Member

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    Biggest issue with this Scheme (IMO) is that First Home Buyers are often going with banks that have the LMI waiver but a higher rate of interest and if you do the sums it can actually cost them more having an No LMI with higher interest rate. FOMO is real
     
  11. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    There's a number of lenders taking part in the FHLDS which are far more competitive than the big banks, with (basic) rates below 3%.

    The process is essentially:

    * Select the most appropriate lender.
    * Reserve your place in the FHLDS register.
    * Organise a pre-approval with that lender.
    * Purchase a property and settle within 90 days.
     
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  12. Lindsay_W

    Lindsay_W Well-Known Member

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    Most of those smaller lenders allocations are gooooone - there are more allocations coming though :)