Recent price falls in Sydney, Melbourne, Brisbane, and Perth now mean some new city suburbs qualify for the First Home Loan Deposit Scheme (FHLDS), previously beyond the price caps.
Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.08% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 Star Customer Ratings |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% | Apply in minutes |
| Promoted | Disclosure | |||||||||
6.09% p.a. | 6.11% p.a. | $3,027 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure |
The FHLDS allows first home buyers to get into the property market with a 5% deposit without having to pay lenders mortgage insurance (LMI).
One of the criteria for the scheme is for the property in question to be below state-specific price caps.
Following price decreases since from March 2020 to January 2021, new suburbs have become eligible.
However, all newly-eligible suburbs are for units, instead of houses (list below), with many in Melbourne's inner-ring including Docklands, Brunswick, St Kilda, South Melbourne, and more.
New eligible suburbs for the FHLDS
The 23 new suburbs eligible for the Scheme include 11 in Sydney, 10 in Melbourne, one in Brisbane, and one in Perth.
| Suburb | Median Unit Price January 2021 | FHLDS Price Cap (Established) | Price Drop from March 2020 |
| Kellyville, NSW | $675,780 | $700,000 | $71,882 |
| Rouse Hill, NSW | $638,755 | $700,000 | $88,146 |
| Arncliffe, NSW | $690,441 | $700,000 | $31,185 |
| Hurstville, NSW | $651,924 | $700,000 | $65,019 |
| Ashfield, NSW | $689,884 | $700,000 | $28,065 |
| Strathfield, NSW | $688,341 | $700,000 | $57,899 |
| Wentworth Point, NSW | $686,114 | $700,000 | $28,905 |
| Gladesville, NSW | $698,114 | $700,000 | $53,524 |
| Ryde, NSW | $678,719 | $700,000 | $36,181 |
| Caringbah, NSW | $679,373 | $700,000 | $38,053 |
| Kirrawee, NSW | $671,313 | $700,000 | $36,015 |
| Balaclava, Vic | $598,436 | $600,000 | $19,856 |
| Brunswick, Vic | $579,828 | $600,000 | $28,319 |
| Docklands, Vic | $575,517 | $600,000 | $40,679 |
| South Melbourne, Vic | $596,486 | $600,000 | $49,438 |
| St Kilda East, Vic | $579,514 | $600,000 | $34,169 |
| Thornbury, Vic | $584,288 | $600,000 | $27,416 |
| Ferntree Gully, Vic | $576,067 | $600,000 | $24,372 |
| Beaconsfield Upper, Vic | $573,562 | $600,000 | $28,142 |
| Clayton, Vic | $570,988 | $600,000 | $65,579 |
| Oakleigh, Vic | $575,210 | $600,000 | $53,324 |
| South Brisbane, Qld | $468,672 | $475,000 | $14,605 |
| Munster, WA | $397,318 | $400,000 | $49,036 |
Sources: CoreLogic, National Housing & Finance Investment Corporation, (only includes suburbs with 50< transactions in past 12 months)
CoreLogic's head of research Eliza Owen said these suburbs have been hit harder by international border closures and lack of international migration.
"The housing market has shown a robust performance, despite the shock of COVID-19 in 2020. But the pandemic has impacted pockets of the housing market, creating opportunities for buyers," she said.
"Recent housing value declines are particularly prominent in major cities like Sydney and Melbourne. These cities accounted for around 75% of international migration across the capital cities in 2018-19, meaning international border closures have created a particular demand shock.
"Unsurprisingly, six of these include unit values in the Melbourne inner region, where median values have declined an average [of] $33,313 between the onset of the pandemic and January."
Currently, the price caps are higher for newly-constructed homes, but Ms Owen says first home buyers prefer established properties, which feature lower price caps on the FHLDS.
"Established property has historically been favoured by first home buyers where benefits for both new and established property have been available. That was further demonstrated in the slower utilisation of the FHLDS when it was made available for only new property," she said.
Photo by Arun Clarke on Unsplash
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