First Home Loan Deposit Scheme (FHLDS) - eligibility

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

 

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

 

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?

 

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

 

Not eligible because wife is not Australian citizen yet.

 

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

 

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

 

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.

 

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.

 

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

 

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.

 

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