FHLDS Trends & Insights Report 2020-21

Record low interest rates and government assistance have helped support buyer confidence and the housing market more generally throughout the COVID-19 pandemic.

First home buyers have been front and centre of the economic recovery, recording their highest proportion of all owner-occupier buyers in over a decade over the course of 2020–21. This has been underpinned by record amounts of monetary and fiscal support, including the Government’s Homebuilder program, various state and territory programs, as well as two low-deposit home loan guarantee initiatives for first home buyers, the:

  1. First Home Loan Deposit Scheme (FHLDS) – On 1 July 2020, the Commonwealth Government released its second round of FHLDS guarantees. This provided another 10,000 guarantees that, subject to eligibility and lender credit criteria, allowed first home buyers on modest incomes to purchase a home with a deposit of as little as 5% of the value of the property.
  2. New Home Guarantee (NHG) – Commencing on 2 November 2020, the NHG allows first home buyers with as little as 5% deposit to build a new dwelling or purchase a newly built dwelling. The NHG will be available until 30 June 2022.


More recently, the Government also introduced the Family Home Guarantee (FHG), offering eligible single parents with dependants the opportunity to purchase a new home with a deposit as low as 2%.

The first report on the operation of the FHLDS between 1 January 2020 to 30 June 2020 was published in August 2020. This report provides an annual snapshot of the operation of the FHLDS and the NHG for the 12 months from 1 July 2020 to 30 June 2021, as well as broader trends since the scheme’s initial implementation on 1 January 2020.


Key points

  • The schemes have supported tens of thousands of Australians in purchasing their first home, contributing to strong first home buyer demand
  • Younger first home buyers made up a considerable portion of recipients
  • The schemes achieved broad geographical coverage, with strong representation under FHLDS from regional areas
  • Key workers accounted for a significant proportion of the support given under the schemes, allowing this cohort to enter the home ownership market for the first time
  • Buyers were willing to move further away from their existing residence to buy their first home, particularly those under the NHG
  • Over time, the schemes have recorded improvements to debt risk and overall mortgage serviceability, supported by falling interest rates and increased income levels