27 October 2019

Supporting first home buyers


Joint media release with

The Hon Michael Sukkar MP
Minister for Housing
Assistant Treasurer

The Coalition Government has today released for consultation the draft Investment Mandate for the First Home Loan Deposit Scheme (the Scheme) which will help eligible first home buyers enter the property market sooner.

The National Housing Finance and Investment Corporation (NHFIC) Investment Mandate Amendment (First Home Loan Deposit Scheme) Direction 2019, sets out the core elements of the Scheme and NHFIC’s housing research function, including the property price caps.

The Scheme provides a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5 per cent. The Scheme will support up to 10,000 loans each financial year, starting from 1 January 2020.

Applicants will be subject to eligibility criteria, including having taxable incomes up to $125,000 per annum for singles and up to $200,000 per annum for couples. The Scheme will apply to owner-occupied loans on a principal and interest basis.

Property price caps under the Scheme set appropriate price thresholds in capital cities, large regional centres with a population over 250,000 and regional areas;


Capital city and regional centres

Rest of state


























The capital city price caps will apply to large regional centres with a population in excess of 250,000, namely the Gold Coast, Newcastle and Lake Macquarie, the Sunshine Coast, Illawarra (Wollongong) and Geelong, recognising that dwellings in large regional centres tend to be significantly more expensive than other regional areas.

The Scheme complements other Coalition Government initiatives to reduce pressure on housing affordability in Australia and support local communities. This includes:

  • The First Home Super Saver Scheme which helps Australians build a deposit for a first home inside their superannuation fund by making voluntary contributions.
  • Investing $1 billion in local infrastructure to unlock new housing supply, in partnership with local councils through the National Housing Infrastructure Facility.
  • Releasing suitable Commonwealth land, including defence land, for housing development.

These incentives have helped thousands of first home buyers enter the market. In the past year, around 110,000 Australians bought their first home – the highest level since 2009.

The Coalition Government’s plan to build a stronger economy will continue to help first home buyers own their first home sooner.

Stakeholders are invited to comment on the draft Investment Mandate Amendment and associated material, which are available on the Treasury website. Submissions close on Monday, 4 November 2019.