One of the greatest challenges for State and Federal Governments is housing affordability. Trying to help the younger generation by their first home, or help people get out of the rental cycle, has been a focus for some time. There have been several initiatives announced by both levels of government over the last few budgets to make it easier to get into the property market, with most of them centered around helping first home buyers, which are outlined below.


The First Home Loan Deposit Scheme (FHLDS) is an Australian Government initiative to support eligible first home buyers to build or purchase a first home sooner. The Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC).

Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase or build a new home with a deposit of as little as 5 per cent (lenders criteria apply). This is because NHFIC guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer’s home loan.

In a recent Federal Budget announcement, the scheme was expanded by a further 10,000 places from July 2021 for new homes only. This includes building a new home or buying a new home off the plan.

There are property price thresholds in place which vary for metropolitan and regional areas, however you can check your eligibility for the scheme by going to the website


This is another Federal Government program which provides eligible single parents with dependants the opportunity to build a new home or purchase an existing home with a deposit of 2 per cent, subject to the individual’s ability to service a home loan.

From 1 July 2021, 10,000 Family Home Guarantees will be made available over four financial years.

The Family Home Guarantee is aimed at single parents with dependants, regardless of whether that single parent is a first home buyer or previous owner-occupier. Applicants must be Australian citizens, at least 18 years of age and have an annual taxable income of no more than $125,000. 

Again, property price thresholds apply and are the same as those under the First Home Loan Deposit Scheme. Please check your eligibility to participate in the scheme through the website


This initiative has been around for some time and is another way for first home buyers to boost their deposit and help them get into a property sooner. To participate you are a first home buyer wanting to either:

  • live in the premises you are buying, or intend to as soon as practicable, or
  • you intend to live in the property for at least six months within the first 12 months you own it, after it is practical to move in.

You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme, up to a total of $30,000 contributions across all years.

It is important to note that eligible contributions do not include the employer super contributions under the Super Guarantee, only voluntary contributions made by you. Further information can be found under the Australian Taxation Office website.


The State Government has announced further concessions on Stamp Duty for first home buyers and an expansion to the concessions available for people purchasing properties off the plan. In some instances the discount is as much as 100% , and the property threshold to qualify for these concessions has also increased up to $1million.

The new rules take effect from July 1, 2021, and the full detail of the expansion of the tax cut benefits are outlined on the Victorian State Revenue Office website.

As not every Financial Institution is participating in these schemes it is best to speak with an expert to get the best advice. If you are potentially eligible to participate in any of these government initiatives, please give the team at SHL Finance a call. We can guide you through the eligibility criteria, the application process and ensure you receive all the assistance available to you.

Reece Droscher
Mobile 0478 021 757

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