The National Housing Finance and Investment Corporation Amendment Bill 2019 establishing the First Home Loan Deposit Scheme has been passed by Parliament and been given Royal Assent. Background.

It is expected that from 1 January 2020, eligible Australian first home buyers with a 5% deposit can get home loans without lenders mortgage insurance (LMI) through the Scheme.

The Scheme will be operated by the National Housing Finance and Investment Corporation.

The Bill was amended by the Senate to require the Minister to review the National Housing Finance and Investment Corporation’s activities assisting additional first home buyers to enter the housing market commenced within 3 months after the end of:
(a) the period beginning on the date when the first guarantee is issued and ending 12 months after that date; and
(b) each subsequent 12 month period.