First home deposit scheme oversubscribed again

CBA says that it has already reached capacity for first home loan deposit scheme (FHLDS) applications:

The Commonwealth Bank has confirmed it is no longer taking applications for the first home loan deposit scheme, which is allowing people to acquire a mortgage with as little as a 5 per cent deposit, saying it has run out of allocated spots.

“We’re proudly supporting the first home loan deposit scheme,” a CBA spokesman said.

“However, due to the popularity and number of places available under the scheme, we are not currently accepting new requests to join our waitlist”…

CBA and National Australia Bank are the only major banks approved for the scheme and are offering half of the NHFIC-backed loans.

Of course, Tuesday’s federal budget set an additional 10,000 places under the FHLDS available between the 6th of October and the 30th of June 2021, which adds to the 20,000 places made available since the scheme started in January 2020.

The price thresholds have also been increased for newly built homes, as illustrated below via CoreLogic:

Given the popularity of the FHLDS, its is likely to be oversubscribed again and run out of places well before the June 2021 deadline.

Thus, we are likely to see first home buyer (FHB) subsidies become a permanent feature of the Coalition’s fake housing affordability policy.

Just as well, because the Coalition needs to generate buyers for property investors to hand-off losing assets:

Gotta summon the FHB patsies.

Leith van Onselen
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  1. And…imagine all that money being redirected from savings and consumption into mortgages…

    Wow…I mean, sure, the future has to be inflation; but, gosh, the present and near-term deflationary forces really are massive.

  2. Bla Bla: Try this>
    Business failures and household financial stress will rise significantly over the coming months when loan repayment deferrals and government income supports end, the Reserve Bank of Australia has warned.
    The major banks expected 12 per cent house price falls and a 9 per cent jobless rate

  3. I’ve been meaning to write a proper critique of FHLDS. All you need to know about this being a bonafide “affordability” policy is stripped bare by the increase in the price caps. Sydney at $950k FFS! Less than $50k savings can see a FHB shackled to nearly a million in debt (with consequent shift in risk from changes to responsible lending laws).

    Welcome to SukkerPrime TM.

  4. happy valleyMEMBER

    “We’re proudly supporting the first home loan deposit scheme,” a CBA spokesman said.

    Of course, they are and they’ll be proudly supporting turbocharged irresponsible lending come March.

  5. I think the scheme should be renamed to something more religious like the Hajj. It is your duty as an Australian who believes in the prophet of house prices always going up to buy your first home at some point of your life.

    Every young Australian should aspire to it.

    • Charles MartinMEMBER

      ahh, but will they ever become SHBs or THBs, thats how you make your real estate fortune. Moar schemes are needed in a few years time to help the FHBs up that steep ladder.

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