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Government expands FHLDS property price caps

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Annie Kane 6 minute read

The Treasury has expanded the property price caps for homes purchased under the First Home Loan Deposit Scheme and Family Home Guarantee.

The federal government has confirmed new property price caps for the First Home Loan Deposit Scheme (FHLDS) and the Family Home Guarantee, which apply from 1 July 2021.

A total of 30,000 places will be made available under the First Home Loan Deposit Scheme range of schemes in the new financial year.

As of 1 July, 10,000 additional places will be available for the 2021-22 financial year under each of the FHLDS, the New Home Guarantee and the Family Home Guarantee initiatives.


New price caps

Both the FHLDS and Family Home Guarantee will operate under new property price caps.

The move comes following criticism that the caps were too low in some cities, particularly given that the average house price in NSW has now surpassed $1 million for the first time.

Speaking of the new caps, Assistant Treasurer and Minister for Housing Michael Sukkar MP, commented that the new caps would “ensure that people can continue to purchase a home, as well as accommodate larger families under the Family Home Guarantee”.

They are as follows:


The capital city price thresholds apply to regional centres with a population over 250,000, “recognising that dwellings in regional centres can be more expensive than other regional areas”.

Regional centres include: Newcastle and Lake Macquarie; Illawarra (Wollongong); Geelong; Gold Coast and Sunshine Coast. 

New Home Guarantee construction extension

The FHLDS (New Homes) scheme (also known as the New Homes Guarantee) which was launched last year, will be expanded for a second year, providing an additional 10,000 places in 2021-22.

It will provide an additional 10,000 places for first home buyers seeking to build a new home or purchase a newly built dwelling with a deposit of 5 per cent and a construction commencement time frame of 12 months.

The New Home Guarantee will now have a construction commencement time frame of 12 months.

Its price caps remain the same, and are as follows:

Speaking ahead of the release of the additional 30,000 places under the First Home Loan Deposit Scheme, the New Home Guarantee program, and the Family Home Guarantee from 1 July 2021, Minister Sukkar commented: “The First Home Loan Deposit Scheme has been a landmark success of the Morrison government since its commencement in 2020. Thirty thousand first home buyers have been supported into home ownership through First Home Loan Deposit Scheme and New Home Guarantee already.

“We know how difficult it can be to buy a new home or re-enter the housing market, and that saving a deposit is the hardest part of getting into home ownership. That’s why the Morrison government has established the new Family Home Guarantee, which recognises the challenge of saving for a deposit is that much more difficult when you are a single parent with children.

“By supporting single parents and their children, we are helping them achieve the security and dignity that home ownership provides,” Minister Sukkar said.

“Through our First Home Loan Deposit Scheme and the New Home Guarantee Program, the Morrison government is helping more first home buyers and single parent families overcome the challenges of saving for a deposit and realising the Australian dream of owning your own home.

“With the 30,000 new places available from 1 July, now is the time for potential applicants to contact a participating bank or mortgage provider and get their applications underway.”

[Related: Government announces new home ownership scheme]

Government expands FHLDS property price caps
sukkar mp
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sukkar mp
Annie Kane

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Email Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.



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