New financial year, new first home scheme spots, new price caps.

The price caps for homes purchased under the First Home Loan Deposit Scheme (FHLDS) have been raised by $100,000 or more across most states and territories barring the ACT, where they remain unchanged.

Given the strong growth in property prices this year, this is welcome and timely news for prospective first home buyers.

The table below shows the new price caps under the FHLDS’ First Home Guarantee.

New price caps for the FHLDS (First Home Guarantee)

Region FY 2020-21 FY 2021-22
NSW – Sydney & regional centres
(Newcastle, Lake Macquarie & Illawarra)
$700,000 $800,000
NSW – rest of state $450,000 $600,000
VIC – Melbourne & regional centre
(Geelong)
$600,000 $700,000
VIC – rest of state $375,000 $500,000
QLD – Brisbane & regional centres
(Gold Coast & Sunshine Coast)
$475,000 $600,000
QLD – rest of state $400,000 $450,000
WA – Perth $400,000 $500,000
WA – rest of state $300,000 $400,000
SA – Adelaide $400,000 $500,000
SA – rest of state $250,000 $350,000
TAS – Hobart $400,000 $500,000
TAS – rest of state $300,000 $400,000
ACT $500,000 $500,000
Northern Territory $375,000 $500,000
Jervis Bay Territory & NorfolkIsland $450,000 $550,000

Despite these increases, the price caps for properties purchased under the FHLDS New Home Guarantee are still higher.

For example, the price cap for new homes in Sydney, NSW under the New Home Guarantee is $950,000 compared to the $800,000 under the First Home Guarantee.

So if you are planning to buy or build a new property, then you may be better off under the New Home Guarantee.


30,000 new places available from 1 July

Starting from 1 July 2021, for the 2021-22 financial year:

  • 10,000 new places under the FHLDS (First Home Guarantee)
  • 10,000 new places under the FHLDS (New Home Guarantee)
  • 10,000 places (over four years) under the Family Home Guarantee for single parents

While the number of places may seem high, there has been strong demand for the schemes each year. Expect prospective first home buyers to snap up these places quickly.

If you want to buy or build your first home with the FHLDS, you can now book a place in the scheme for yourself by applying for pre-approval with a couple of our lenders. If you qualify, you’ll be notified of your FHLDS Place ID number once a place is reserved for you.

Find out if you qualify for the scheme using the Home Loan Experts FHLDS Eligibility Calculator.


Thinking of applying? Get your tax returns done soon

In order to apply for the FHLDS scheme, you’ll need to provide your Notice of Assessment (NOA) from the Australian Taxation Office for the financial year 2020-21.

While you do not need to provide your tax return for 2020-21 when applying for pre-approval, the return will be required to achieve formal or unconditional approval.

Most people don’t lodge their tax returns right away, so if you are quick to lodge yours, then you can get in before everyone else and secure one of the limited spots in the scheme.

To get pre-approved and reserve your place, speak with someone from Cornerstone Home Loans today.

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