First Home Loan Deposit Scheme (FHLDS) 2025 Guide | Esteb and Co
✨ MAJOR UPDATE: OCT 2025 EXPANSION

First Home Loan Deposit Scheme (FHLDS) 2025

Now called First Home Guarantee. Unlimited places. No income caps. Buy with 5% deposit and $0 LMI.

Check FHLDS Eligibility → What Changed in 2025?
🎉
Unlimited
Places Available (since Oct 2025)
💰
$0
LMI on 5% Deposit
🚫
No Cap
Income Limits Removed
📈
+40%
Price Caps Increased

🔥 What's New in FHLDS 2025?

Major expansion announced October 2025 - biggest changes in the scheme's history

NEW

✅ Unlimited Places

Before: Only 35,000 places per year (competitive)

Now: Unlimited - no more rushing or missing out

NEW

✅ No Income Caps

Before: Max $125K (singles) or $200K (couples)

Now: No income limits at all - anyone can apply

NEW

✅ Higher Property Price Caps

Before: Sydney $950K, Melbourne $650K

Now: Sydney $1.5M, Melbourne $950K (+40%!)

💡 What This Means For You

  • ✓ More expensive properties now eligible - Can buy in better suburbs
  • ✓ High income earners can use it - Doctors, lawyers, executives all eligible
  • ✓ No more "first come, first served" - Apply anytime throughout the year
  • ✓ Government committed long-term - Scheme is here to stay

What is the FHLDS (First Home Guarantee)?

A government scheme that lets first home buyers purchase with just 5% deposit

How it Works:

1

You Save 5%

Save just 5% deposit instead of the usual 20%. On a $600K property, that's $30K instead of $120K.

2

Government Guarantees 15%

Housing Australia guarantees the missing 15% to the lender, so you don't need Lenders Mortgage Insurance.

3

You Pay $0 LMI

Normally a 5% deposit means paying $15K-$40K in LMI. With FHLDS, you pay nothing.

4

You Never Repay It

The guarantee is free. You don't pay it back to the government - ever. It just sits there protecting the lender.

📜 FHLDS Timeline

  • 2020: Scheme launched as "First Home Loan Deposit Scheme"
  • 2022: Renamed to "First Home Guarantee (FHG)"
  • 2023-2024: 35,000 places per year, income caps applied
  • Oct 2025: 🎉 Unlimited places + no income caps expansion

🗺️ Property Price Caps by Location

Your property must be under these limits to qualify for FHLDS

City/Region Old Cap (pre-Oct 2025) New Cap (Oct 2025+) 5% Deposit Amount
Sydney $950,000 $1,500,000 $75,000
Melbourne $650,000 $950,000 $47,500
Brisbane $700,000 $1,000,000 $50,000
Perth $500,000 $700,000 $35,000
Adelaide $500,000 $700,000 $35,000
Canberra $600,000 $800,000 $40,000
Darwin $550,000 $650,000 $32,500
Hobart $550,000 $700,000 $35,000

💡 Note: Price caps increased by approximately 40% across all cities in October 2025

FHLDS Eligibility Requirements

Check if you qualify - it's easier than you think

✅

1. First Home Buyer

You (and your partner, if buying together) haven't owned property in Australia before.

Exception: If you previously owned but sold more than 10 years ago, you may still qualify.

✅

2. Australian Citizen or Permanent Resident

Must be able to prove citizenship or permanent residency status.

Temporary visa holders (including bridging visas) don't qualify.

✅

3. No Income Cap NEW 2025

Income limits removed October 2025. Anyone can apply regardless of earnings.

Previously: $125K singles, $200K couples. Now: No limit!

✅

4. Property Under Price Cap

Purchase price must be under your city's cap (see table above).

Example: Sydney property at $1.4M = eligible. Sydney property at $1.6M = not eligible.

✅

5. Owner-Occupied Property

Must be your main residence. Move in within 12 months and live there for at least 6 continuous months.

❌ Investment properties don't qualify

✅

6. Established or New Property

Established homes: Any age OK

New homes: Must be less than 5 years old

❌ Off-the-plan properties not eligible

How to Apply for FHLDS

Step-by-step process from eligibility check to settlement

1

Check Your Eligibility (2 Minutes)

Use our quick eligibility checker to see if you qualify for FHLDS.

  • Answer 5-6 simple questions
  • Get instant yes/no answer
  • See how much you can borrow
Check Eligibility →
2

Get Matched to FHLDS Lenders (Instant)

Not all lenders participate in FHLDS. Our algorithm finds the ones that do - and matches you to the best fit.

  • 83 lenders compared instantly
  • See which ones participate in FHLDS
  • Get match confidence scores

💡 We compare rates, features, and approval likelihood

3

Submit Loan Application (Same Day)

Apply through your chosen lender. Gather documents:

  • ID (driver's license, passport)
  • Proof of income (payslips x3, tax returns)
  • Bank statements (3-6 months)
  • Employment verification letter
4

Lender Arranges Government Guarantee (3-7 Days)

Behind the scenes: Your lender submits your application to Housing Australia.

  • Housing Australia verifies you meet FHLDS criteria
  • Guarantee is approved (or application declined)
  • You receive conditional approval from lender

⏱️ This step usually takes 3-7 business days

5

Find Your Property (Varies)

Now you can shop with confidence - you know your budget and you're pre-approved.

  • Ensure property is under price cap
  • Check it meets FHLDS property requirements
  • Get building & pest inspections
6

Unconditional Approval & Settlement (4-6 Weeks)

Final steps to get your keys:

  • Bank values the property
  • Final approval (unconditional)
  • Sign loan documents
  • Settlement day - you own the property! 🎉

FHLDS FAQs

Is the FHLDS still running in 2025?

Yes! The scheme is now called "First Home Guarantee" and it's been massively expanded. Unlimited places, no income caps, and higher price limits since October 2025.

Do I pay the government guarantee back?

No. The guarantee is completely free. You never pay it back. You only pay your regular mortgage to the lender.

What's the difference between FHLDS and FHG?

They're the same thing. The scheme was originally called "First Home Loan Deposit Scheme (FHLDS)" and was renamed to "First Home Guarantee (FHG)" in 2022.

Can I refinance later with FHLDS?

Yes. Once your loan balance drops to 80% LVR (usually after 2-5 years), you can refinance. The guarantee falls away at that point since you no longer need it.

Can I use FHLDS if I'm self-employed?

Yes, as long as you meet all other requirements. You'll need to provide tax returns (usually 2 years) to prove income.

What if I'm buying with my partner?

Both of you must be first home buyers and meet all eligibility requirements. If one person has owned property before (within 10 years), you don't qualify.

Can I rent out the property after moving in?

Yes, but you must live in it as your main residence for at least 6 continuous months first. After that, you can rent it out.

What happens if I sell the property?

Nothing. The guarantee just falls away. There's no penalty or repayment required. You simply sell like normal.

Ready to Apply for FHLDS?

Check your eligibility in 2 minutes. Get matched to 83 FHLDS-approved lenders. Save $15K-$40K in LMI.

✓ Unlimited places
✓ No income caps
✓ Free service
✓ 2-min check
Check FHLDS Eligibility →
Ricky Esteb - Licensed Mortgage Broker
Richard (Ricky) Esteb
Licensed Mortgage Broker & Founder
Credit Rep #574071 ACN 681 636 056 83+ Lender Panel

With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking. Every piece of content is written from real-world lending experience.

✓ Verified & Last Reviewed: December 2025 | Content meets ASIC regulatory requirements
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