Finance brokers need to become familiar with the details of the Government’s First Home Loan Deposit Scheme, which came into effect on January 1, according to the Finance Brokers Association of Australia (FBAA).

Managing Director Peter White said the scheme has created an enormous amount of interest but there are hurdles and limitations that brokers must be aware of before providing assistance to borrowers.

He explained that the FBAA has been working closely with the Government and this collaboration has resulted in a special information kit being created just for brokers.

“It is important to note that the scheme will not be available to everyone and is limited to 10,000 people per financial year, so brokers need to do some research before walking potential borrowers down this path,” he said.

Mr White also pointed out that not all lenders are participating and there are geographical restrictions that limit the amount available to borrow.

“There are two major banks involved being the NAB and CBA, plus 25 non-major banks of who Government advises they will receive not less than 50 per cent of the allocations for places in the scheme.

“Brokers should also be aware that the price cap varies according to postcode; for example in Sydney and Newcastle the maximum amount someone can borrow is $700K whereas in many regional NSW centres it decreases to $450K.”

The FBAA has made the information flyers available on its website, or brokers can access them via the Government site https://www.nhfic.gov.au.