(FHLDS) articleNov20 (003)

First Home Loan Deposit Scheme (FHLDS) – New Homes Eligibility Facts 

A consequence of COVID 19 has been the stimulus to the property market through Government Grants.  While Grants such as the HomeBuilders Grant will end on 31 December, 2020, other incentives to assist homeowners build new homes are available. The First Home Loan Deposit Scheme (FHLDS) is one of these. Below are some of the eligibility criteria you need to know.

Background

In the 2020-21 Federal Budget, the Australian Government announced an additional 10,000 FHLDS places for the 2020-21 financial year, specifically for eligible first home buyers building or purchasing new homes. These additional places are known as the First Home Loan Deposit Scheme (New Homes) or FHLDS (New Homes).

Eligible first home buyers can use the FHLDS (New Homes) guarantee in conjunction with other Government programs like the First Home Super Saver Scheme, HomeBuilder Grant or State and Territory First Home Owner Grants and stamp duty concessions.

Under the FHLDS (New Homes), first home buyers can build or purchase a new home, including:

  • newly-constructed dwellings
    • Completed construction on or after 1 January 2020 and
      • Not been previously sold as residential premises
        • Properties substantially renovated by the vendor qualify
      • Not been previously rented or leased or made available for rent or lease
      • Has never been lived in; and
      • Capable of being lived in from the date of settlement
    • Must enter a contract of sale by the end of their 90 day pre-approval period, and
    • Must move into the property within 6 months of settlement
  • off-the-plan dwellings
    • must have a contract of sale dated on or after the 7 October 2020
    • must move in within 6 months of the occupancy certificate being issued
  • house and land packages
    • must enter into:
      • a contract of sale for land; and
      • an eligible building contract dated on or after 7 October 2020 to build on the land
    • must start building within 6 months of entering into the building contract
    • must finish building within 24 months of starting, and
    • move into the new home within 6 months of the occupancy certificate being issued
  • land and a separate contract to build a new home.
    • Prior to expiration of their pre-approval enter into:
      • Contract to acquire land
      • An eligible building contract on or after 7 October 2020
    • must start building within 6 months of entering into the building contract
    • must finish building within 24 months of starting, and
    • move into the new home within 6 months of the occupancy certificate being issued

For full details on the scheme visit the FHLDS Website

If you are considering building a new home, and are eligible for Government Grants, contact our experienced Home Loan Specialist team to help you assess your finances and suitability for a home loan.

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