Buying a first home can be daunting. From saving for a house deposit to searching for the perfect property, it can be a significant life event.

To support first home buyers with their home purchase, the Australian Government has introduced the First Home Loan Deposit Scheme (Scheme) - a Government-backed initiative to help everyday Australians buy their first home.

NAB is proud to be chosen as the first approved lender by the National Housing Finance and Investment Corporation (NHFIC) to help implement the First Home Loan Deposit Scheme.

Every year, we support more than 15,000 Australians achieve their dream of owning their first home. As the only major bank to have a special rate offer for first home buyers, our selection as an approved lender to the Scheme is another example of our efforts to support first home buyers enter the property market sooner and to potentially save thousands of dollars on their mortgage by avoiding Lenders Mortgage Insurance (LMI).

What is the First Home Loan Deposit Scheme?

The Scheme is designed to support eligible first home buyers to purchase their first home sooner.

Generally, customers today need to save at least 20% of the property’s value to secure a home loan without needing to pay for LMI. Under the scheme, the NHFIC will provide a limited loan Government Guarantee of up to 15% of the property’s value (subject to stamp duty and other fees/charges). The Guarantee will be provided through selected Scheme participants with NAB selected as first participating lender.

There are a total of 10,000 Government Guarantees per financial year shared among selected participating financial lenders, with applications accepted from 1 January 2020.


Find out if you could be eligible for the Scheme by checking the NHFIC eligibility criteria. This includes income thresholds and property prices, with the following conditions generally applying1:

  • It’s only available to first home buyers, so you—and your spouse/partner—can’t have owned property in Australia before.
  • You must be an Australian citizen and so must your spouse/partner.
  • Your taxable income must be no more than $125,000 or no more than $200,000 if applying with a spouse/partner in the last financial year
  • Your maximum property purchase price is dependent on the suburb and postcode of your new property. Check your property’s suburb and postcode using NHFICs property price threshold tool to find out your area’s property price threshold.
  • You must live in the property after you’ve purchased it – as the Scheme is only available to owner-occupiers.
  • You can only receive the Government Guarantee once.

What does it mean for you?

If you’re an eligible first home buyer, you’ll only require a minimum 5% deposit of the property’s value (subject to stamp duty and other fees/charges) to apply for a home loan. Up to 15% will be provided as part of the Scheme by NHFIC.

How do I apply for the scheme?

You’re able to apply for the Scheme with NAB from 1 January 2020. If you would like to know more about the Scheme prior to this date, please visit the NHFIC website.

Other first home buying assistance grants and concessions

The First Home Loan Deposit Scheme may assist first home loan buyers in getting into their homes sooner, however it’s important to consider how a smaller initial house deposit may impact your repayments in the long run; generally smaller initial deposits may result in higher interest repayments over time.

First Home Owner Grant

If you’re starting out, you might qualify for a First Home Owner Grant (FHOG). How much you get, and the rules and conditions vary from state to territory and can change from time to time.

We’ve got more information about the FHOG in our First Home Owner Grant story. NAB has a summary of the various schemes (with links to each state/territory’s website).

Most states and territories offer grants for newly built homes now rather than established homes. The grant amounts differ depending on your state or territory but range from $10,000 to $15,000 on average.

As of 2016, only the Northern Territory offers grants over $15,000. You can check your state or territory's grant eligibility and amounts on their websites.

Stamp duty concessions

If you’re buying your first house, you may also qualify for stamp duty concessions (depending on the state/territory). Since stamp duty can add another 3-5% to the purchase price, this is a real help.

We know that the home loan process can be daunting. When the time comes, don’t feel like you have to do it on your own. Call us on 13 78 79, visit your local branch, make an appointment with a mobile banker or, if you’re ready, feel free to apply online.

Important information

1 Updates to the Scheme eligibility criteria will be provided on leading up to 1 Janurary 2020. Please refer to the NHFIC website. for more information on the Scheme eligibility criteria.

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