Struggling to Save a Deposit? How the First Home Loan Deposit Scheme Helps Wollongong Buyers

Update: The information provided in this blog relates to the First Home Loan Deposit Scheme (FHLDS), which was replaced by the First Home Guarantee (FHBG) on 1 July 2022. The FHBG is part of the Home Guarantee Scheme, administered by Housing Australia. References to FHLDS are used for informational purposes only. Eligibility criteria, property price caps, and program availability are subject to change. We recommend consulting with a licensed mortgage broker or visiting housing.gov.au for the most current details. SimpleFin mortgage brokers are accredited to assist clients with lender applications under the current scheme.



For many first-time buyers in Wollongong, saving up a full 20% deposit feels like an uphill battle. Rising property prices, high rental costs, and the increasing cost of living all make it harder to set aside enough savings.

That’s where the First Home Loan Deposit Scheme (FHLDS) comes in. This Australian Government initiative is a real game-changer, helping eligible buyers enter the property market with as little as 5% deposit. 

If you need expert help with how to apply for a First Home Loan Deposit in Wollongong, our brokers at SimpleFin can help. Our brokers often work closely with first-home buyers to simplify the process, help them understand their eligibility, thereby increasing the chances of loan success. 

Let’s explore how this scheme works, who qualifies, and how you can take your first step towards homeownership in Wollongong.

Key Takeaways

• The First Home Loan Deposit Scheme helps eligible first-home buyers purchase a property with as little as a 5% deposit.
  
  
• The scheme eliminates Lenders Mortgage Insurance (LMI), potentially saving buyers thousands.
  
  
• It's part of the Home Guarantee Scheme, with a limited number of places released each year.
  
  
• To be eligible, buyers must meet income, citizenship, and property price cap requirements—$600,000 in Wollongong.
  
  
• SimpleFin’s Wollongong mortgage brokers assist with eligibility checks, lender selection, paperwork, and full scheme application support.
  
  
• Buyers can combine FHLDS with other grants like the First Home Buyer Assistance Scheme or First Home Super Saver Scheme.
  
  
  

What is the First Home Loan Deposit Scheme?

The First Home Loan Deposit Scheme is a government program introduced to support first-time buyers who have a smaller deposit saved. Instead of the standard 20% deposit required by most lenders, the scheme allows eligible buyers to purchase a home with only 5%.

Here’s how it works: the government acts as a guarantor for the remaining 15% of your deposit. This guarantee allows you to skip Lenders Mortgage Insurance (LMI), which can often add thousands to your loan costs.

The scheme is officially part of the Home Guarantee Scheme, managed by Housing Australia. Each financial year, a limited number of places are released—so timing is important.

For Wollongong residents, where property prices continue to rise, this scheme offers a genuine opportunity to enter the market sooner.

Ready to buy your first home in Wollongong with just a 5% deposit? SimpleFin’s expert Wollongong mortgage brokers help you apply for the First Home Loan Deposit Scheme stress-free. Call 0457 531 124 or head towww.simplefin.com.au to get started.

Benefits of the First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme (FHLDS) offers several key advantages for eligible first-home buyers in Wollongong:

• Buy with a 5% deposit: You don’t need to wait until you’ve saved a full 20%. This means you can enter the market sooner, before property prices rise further.
  
  
• No Lenders Mortgage Insurance (LMI): The government guarantee covers the lender, so you don’t have to pay Lenders Mortgage Insurance (LMI), potentially saving you thousands of dollars.
  
  
• Faster access to homeownership: With a smaller deposit required, buyers can reduce the time spent saving and take advantage of current market conditions.
  
  
• Support from participating lenders: Approved lenders are experienced with the scheme and offer loan options designed specifically for eligible buyers.
  
  
• Combines with other government grants: You can use FHLDS alongside other assistance programs like the First Home Buyer Assistance Scheme and First Home Super Saver Scheme.

These benefits can significantly reduce the financial pressure and help first-home buyers make a smoother start in the Wollongong property market.

Who is Eligible for the Scheme in Wollongong?

Eligibility is based on a few key criteria. To qualify for the First Home Loan Deposit Scheme, you must:

• Be an Australian citizen or permanent resident over 18.
  
  
• Be a first home buyer.
  
  
• Have an annual taxable income of up to $125,000 for singles or $200,000 for couples.
  
  
• Have a deposit between 5% and 20% of the property’s value.
  
  
• Intend to live in the property as your principal place of residence.

The property must also fall under the price cap. As of the latest update, the maximum property price for Wollongong and regional NSW is $600,000. These caps can change, so it’s worth checking with your broker or on the Housing Australia website.

Our team at SimpleFin will help you confirm your eligibility, calculate your deposit, and assess whether the property you’re eyeing fits within the price thresholds. Book a free consultation with our Wollongong brokers today, call us at 0457 531 124 or visit www.simplefin.com.au.

How to Apply for the First Home Loan Deposit Scheme in NSW

Applying for the First Home Loan Deposit Scheme can be straightforward with the right support. Here’s how first-home buyers in Wollongong and across NSW can get started:

1. Confirm your eligibility

You must be an Australian citizen or permanent resident, at least 18 years old, and a first home buyer. Income and property price caps also apply, so it's important to check you meet the scheme’s criteria.

2. Contact a mortgage broker

Working with a broker like SimpleFin can simplify the process and improve your chances. Brokers help you assess your situation, confirm eligibility, and recommend suitable lenders.

3. Choose a participating lender

Not all banks are part of the scheme, so you’ll need to apply through an approved lender. Your broker will guide you to the right lender based on your financial profile.

4. Get pre-approval

Pre-approval gives you a clear idea of your borrowing power and scheme eligibility. It also allows you to reserve a place in the scheme once you're ready to buy.

5. Reserve your scheme place

Your lender or broker submits a request to hold a spot in the scheme. You typically have 90 days to sign a property contract after the reservation is confirmed.

6. Find a property within the price cap

Make sure the property is within the relevant regional cap—$600,000 for Wollongong as of the latest update. The home must also be a new or existing residential property you’ll live in.

7. Finalise your loan and settle

Once the contract is signed, your broker and lender will finalise the loan and submit required documents. After approval, you’ll proceed to settlement and officially become a homeowner.

So, Is This Scheme Right for You?

If you’ve been saving and dreaming of a home in Wollongong but still feel miles away from a 20% deposit, the First Home Loan Deposit Scheme could be your answer.

That said, it’s not for everyone. You’ll still need to show you can afford the loan, have good credit history, and meet lender criteria. Our brokers will review your full financial picture and recommend the best path forward.

Even if you don’t qualify for this scheme, there may be other government supports you can access, such as the First Home Buyer Assistance Scheme or First Home Super Saver Scheme.

How SimpleFin Helps Buyers in Wollongong with the First Home Loan Deposit Scheme

At SimpleFin, we specialise in helping first-home buyers in Wollongong access the First Home Loan Deposit Scheme with confidence and ease. Our experienced mortgage brokers:

• Check your eligibility for the scheme and other available grants.
  
  
• Compare participating lenders to find a home loan that suits your financial situation.
  
  
• Handle the paperwork and deadlines, ensuring your application is accurate and submitted on time.
  
  
• Guide you through pre-approval and reservation, so you don’t miss out on limited scheme places.
  
  
• Provide local market insight, helping you make informed decisions in the Wollongong property market.

With SimpleFin, you get tailored advice, ongoing support, and a streamlined process from start to finish, making your first home purchase less stressful and more achievable. 

Don’t miss out on your spot in the First Home Loan Deposit Scheme! Talk to our Wollongong mortgage brokers at SimpleFin today. Call 0457 531 124 or visit www.simplefin.com.au to get started.

FAQs

How does the First Home Loan Deposit Scheme work?

It allows eligible buyers to purchase a home with a 5% deposit while the government guarantees the remaining 15%, removing the need for LMI.

What’s the income limit for the First Home Loan Deposit Scheme?

Singles must earn under $125,000 and couples under $200,000 annually to qualify.

What is the price cap for homes in Wollongong under this scheme?

As of the latest update, the price cap for Wollongong is $600,000. Check Housing Australia for current caps.

Can permanent residents access the First Home Loan Deposit Scheme?

Yes, both Australian citizens and permanent residents are eligible if other criteria are met.

How many spots are available each year?

There are 35,000 places available each financial year across all Home Guarantee Schemes, including FHLDS. Spots are limited and can fill up quickly.

Do all lenders offer loans under this scheme?

No. Only specific lenders approved by Housing Australia offer these loans. SimpleFin can connect you with the right ones.

How do I apply for the First Home Loan Deposit Scheme in Wollongong?

You can apply through a participating lender or with help from a local broker like SimpleFin, who will guide you through the process.

Are there affordable areas for first-time home buyers in Wollongong, NSW?

Yes. Some of the affordable places include Cringila and Berkeley. To learn more, please read our guide on the 7 Most Affordable Suburbs To Buy In Wollongong NSW. 

Ready to Take the Next Step?

Buying your first home in Wollongong doesn’t have to be overwhelming, especially with the First Home Loan Deposit Scheme and the right guidance on your side. At SimpleFin, we’re here to help you move forward with expert advice, access to participating lenders, and end-to-end support tailored to your situation. 

Don’t miss your chance to enter the property market sooner and save thousands in LMI. Whether you're just starting out or ready to apply, our Wollongong mortgage brokers are ready to help. Call us today on 0457 531 124 or visit www.simplefin.com.au to book your free consultation. Let’s turn your homeownership goals into reality—simple, smart, and stress-free.