1800 unused First Home Loan Deposit Scheme spots to be reissued

The Federal Housing minister Michael Sukkar has announced that 1800 unused First Home Loan Deposit Scheme spots would be reissued this week.

They date back to the early days of the federal government’s scheme in January 2020.

The initial 10,000 spots were granted a 90-day extension to buy their desired first home on top of their original three months after COVID lockdowns made property hunting difficult.

Almost 1 in 5 of those spots were left unused, a government spokesperson told Domain this week.

The scheme allows singles earning up to $125,000 and couples earning up to $200,000 to borrow up to 95 per cent of a property’s purchase price without having to pay lender’s mortgage insurance.

Properties had to be below price thresholds, ranging from $475,000 in Brisbane to $700,000 for an existing property in Sydney.

The third tranche last October which was restricted to new homes only has seen just 4200 of the 10,000 slots taken up.