What is the First Home Guarantee?
The First Home Guarantee is a part of the Australian Government’s Home Guarantee Scheme (HGS), which aims to make owning a home more affordable. With 35,000 places confirmed between the 1st July 2024 to 30th June 2025, it stands as a significant opportunity to progress your dream to home ownership as a first home buyer.
Eligible home buyers can now purchase a home with a deposit as low as 5%* and enjoy the added benefit of not having to pay Lenders Mortgage Insurance (LMI).
5% Minimum deposit required
35,000 places available for FY 2024-25
Individual and joint applicants
Maximum purchase prices apply. See price caps
How the First Home Guarantee Can Help You
1. Lower Deposit Requirements
The First Home Guarantee reduces the deposit you need to save. Although most customers think they need a 20% deposit, but under this Guarantee, eligible buyers only need to provide a 5%* deposit.
The Government could cover up to 15% of the home loan as a guarantee and the balance may be provided by a home loan from one of the participating lenders where their criteria is met, making it easier to enter the housing market.
2. No Need for Lenders Mortgage Insurance (LMI)
For most home buyers, a deposit under 20% means paying Lenders Mortgage Insurance (LMI). However, participants of the First Home Guarantee are exempt from this requirement, which lowers the overall cost of buying a home.
3. Enhanced Appeal to Lenders
With up to 15% of the home loan guaranteed by the Australian government, eligible home buyers become more appealing to lenders. This can lead to better loan options and easier access to financing, aligning well with enhancing financial security.
What’s New from 1st July 2024?
Expanded Eligibility
The Federal Government has made it easier for more Australians to access the property market. The First Home Guarantee is now available not only to first-time buyers but also to those who haven’t owned a property in the last 10 years. Whether you’re re-entering the market or purchasing for the first time, this is a golden opportunity.
Joint Applications
You can now team up with friends, siblings, or other family members to apply for the Home Buyer Guarantee. This new flexibility allows you to pool your resources and purchase a home together, making the dream of homeownership more achievable.
Special Opportunity for New Zealand Citizens
As an exciting new addition, New Zealand citizens holding a Special Category Visa Subclass 444 (SCV) are now eligible for the Home Guarantee Scheme. This inclusion opens new possibilities for SCV holders, provided all other eligibility criteria are met.
Income and Property Value Limits
While this scheme offers fantastic opportunities, certain income and property value thresholds must be met. These limits may be subject to change, so staying updated is crucial.
Please note: income and property value limits apply and may be subject to change.
Eligibility for the First Home Guarantee
Check your eligibility for the First Home Guarantee using the Housing Australia eligibility tool or by speaking with our finance partner, Resolve Finance.
How to apply for the First Home Guarantee?
Our finance partner, Resolve Finance, can help you check your eligibility and guide you through the application process.
Take the first step toward building your new home with one of Melbourne’s most affordable home builders.
Contact us today, if you are interested in first home guarantee scheme eligibility and how to apply for the first home guarantee scheme (FHBG).
Current eligibility criteria:
To apply for the FHBG, home buyers must be:
- applying as an individual or two joint applicants
- an Australian citizen(s) or permanent resident(s)* at the time they enter the loan
- at least 18 years of age
- earning up to $125,000 for individuals or $200,000 for joint applicants, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
- intending to be owner-occupiers of the purchased property
- First home buyers or previous homeowners who haven’t owned or had an interest in a real property in Australia (this includes owning land only) in the past ten years.
For more information on eligibility requirements, click here.
Information on this page does not consider your personal needs and financial circumstances and you should consider whether it is appropriate for you. The Family Home Guarantee is administered by Housing Australia on behalf of the Australia Government. Customers must be eligible for finance, which is at the discretion of the authorised and participating lenders. To find out more click here. Please note this is a guide only, this information may be subject to change. All Financial services provided by Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN: 65 079 545 378 Australian Credit Licence No. 385487
Why do so many Homebuyers Centre customers use Resolve Finance?
Since 1997, Resolve Finance are construction finance experts and have been proudly supporting homebuyers in Victoria, helping over 36,000 families build their dream homes. Their commitment extends beyond just home loans— offering a complete range of financial services. At Resolve Finance, they’re here to guide you every step of the way, making sure you have a trusted advisor by your side. Their goal is simple: to be your finance partner for life.
Learn how you could get into your new home sooner
Thinking about buying your first home? We’ve got you covered with everything you need to know. From the First Home Owner Grant in Victoria to the Home Guarantee Schemes, this guide will walk you through all the essential details.
Regional First Home Buyer Guarantee (RFHBG)*
If you’re considering becoming a homeowner in Regional Victoria, there’s never been a better opportunity. Eligible home buyers in this area can now secure a property with a deposit as low as 5%*—and the best part? You won’t need to pay Lenders Mortgage Insurance.
First Home Owner Grant (FHOG)*
If you’re buying or building your first new home in Melbourne, Victoria, you could be eligible for a $10,000 First Home Owner Grant*. This valuable boost can help you take that crucial first step toward owning your dream home.
Learn more
Frequently Asked Questions
The First Home Guarantee, part of the Australian Government’s Home Guarantee Scheme, is designed to assist eligible first home buyers in purchasing a home sooner. It allows you to buy a home with as little as a 5% deposit by securing a government guarantee of up to 15% of the property’s value. This support helps you avoid paying for lenders mortgage insurance, reducing the upfront costs of buying your first home.
The 5% scheme often refers to the First Home Guarantee Scheme, which is also part of the broader Home Guarantee initiative. This scheme enables first-time buyers, like young professionals, to purchase a home with a minimum 5% deposit, making it easier to enter the property market without the burden of saving for a traditionally larger deposit. This scheme is a great step towards providing financial relief and support, allowing you to focus on finding the perfect home.
Find out if you're eligible
Together with our partners at Resolve Finance, we will guide you through the process