First Home Guarantee Scheme

family entering a home while carrying their possessions

The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme, an Australian Government initiative to support eligible first home buyers purchase their first home sooner.

The scheme allows first home buyers with less than a 20% deposit, purchase a property and avoid paying lenders mortgage insurance (LMI). It enables clients to complete the transaction with as little as a 5% deposit.

Under this Scheme, National Housing Finance and Investment Corporation (NHFIC) will secure a portion of the home loan that is approved through a participating lender. The list of approved lenders can be found here.

Any guarantee of the home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the eligible lender). This guarantee is not a cash payment or a deposit.

Under the FHBG 35,000 are available to eligible first home buyers from 1 July 2024 to 30 June 2025. There are some requirements:

Applicants must be first home buyers.
There are property purchase thresholds for different states and locations across Australia, this can be checked here.
Applicants must be an Australian citizen at the time they enter the loan.
Applicants must earn no more than $125,000 per year as a single or $200,000 combined as a couple.
The property must be resided in by the applicants (owner occupied).

The scheme also allows applicants access to other government programs – like the First Home Super Saver Scheme or First Home Owner Grant.