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First Home Guarantee Scheme Fact Sheet

What is the First Home Guarantee Scheme?

The First Home Guarantee Scheme is designed to help eligible first home buyers. It does this by making it possible for a buyer to purchase a home with a deposit as low as 5% without the need to pay for Lenders Mortgage Insurance. The government guarantees the value of the deposit with the lender.

How Does the Scheme Work?

The First Home Guarantee Scheme enables eligible first home buyers to purchase a home with a deposit of as little as 5% (or 2% for single parent applicants). The NHFIC guarantees up to 15% of the value of the property that is financed by a participating lender for single or couple applicant and up to 18% of the value for single parent applicants.

Eligible borrowers can also use the First Home Guarantee Scheme in conjunction with other government programs, like the First Home Super Saver Scheme and each state and territories first homeowner grants and stamp duty concession schemes.

Eligibility Requirements:

  • Australian citizen(s) or permanent resident(s) over the age of 18
  • Applying for an owner occupier home loan with principal and interest repayments
  • Taxable income of no more than $125k (single applicants) or $200k (joint applicants) based on prior financial year Notice of Assessment
  • First home buyer or previous home buyer who hasn’t owned a home in the past 10 years (First Home Guarantee or Regional First Home Buyer Guarantee) or single parents or single legal guardians with at least one dependent child who don’t currently own a home (Family Home Guarantee)
  • Minimum 5% deposit (First Home Guarantee or Regional First Home Buyer Guarantee), or minimum 2% deposit (Family Home Guarantee)
  • Price Limits – New South Wales – up to $900,000.
  • Property Types – Residential:
    • an existing house, townhouse or apartment
    • a house and land package
    • land and a separate contract to build a home
    • an off-the-plan apartment or townhouse
  • Relationship Status
    Both singles and couples can benefit from the scheme. From 1 July 2023, other people buying together, including siblings or friends, will be eligible.

Other Changes in 2023 to the scheme to note:

  • All guarantees will also become available to eligible borrowers who are Australian permanent residents
  • First Home Guarantee and Regional First Home Buyer Guarantee will be expanded to non first home buyers who haven’t owned a property in Australia in the past 10 years
  • Under the First Home Guarantee and the Regional First Home Buyer Guarantee, friends, siblings, and other family members will be eligible for joint applications
  • Family Home Guarantee eligibility will be expanded from single, natural or adoptive parents at least one dependent to include eligible borrowers who are single legal guardians of a dependent, such as aunts, uncles and grandparents.