The Home Guarantee Scheme expansion has been announced by the Australian government to help more Australians achieve their dream of home ownership*.
What is the First Home Guarantee?
The First Home Guarantee is part of the Australian Government’s Home Guarantee Scheme (HGS), designed to make home ownership more achievable. From 1 October 2025, expanded eligibility and higher price caps make it even easier for Victorians to buy their first home.
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
No place limits for any eligible Victorian first home buyer in FY 2026-27
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.
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 October 2025?
No place limits
There will no longer be a cap on the number of First Home Guarantee places. Any eligible Victorian first home buyer can access the scheme, providing certainty and peace of mind when planning your next steps.
No income limits
The previous income thresholds ($125,000 for individuals and $200,000 for joint applicants) will be removed. This means the scheme is now available to all first home buyers in Victoria, regardless of their income level.
Simplified regional access
The Regional First Home Buyer Guarantee (RFHBG), introduced last year, will now be merged into the First Home Guarantee. This ensures a single, streamlined scheme for both metropolitan and regional buyers.
Income and Property Value Limits
From 1 October 2025, income limits will no longer apply — all Victorian first home buyers can access the First Home Guarantee regardless of their income.
Property price limits, however, still apply and have been increased to reflect the market:
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Melbourne & Geelong: up to $950,000
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Other regional areas of Victoria: up to $650,000
Please note: income and property value limits currently apply and may be subject to change.
What continues from last year
Joint applications
Introduced in 2024, joint applications allowed friends, siblings, or family members to apply together, making it easier to combine resources. This remains in place under the updated scheme, continuing to help more people achieve home ownership.
Special opportunity for New Zealand citizens
Also added in 2024, New Zealand citizens holding a Special Category Visa Subclass 444 (SCV) became eligible for the scheme. This inclusion continues under the 2025 expansion, ensuring SCV holders have the same opportunity to purchase a home in Victoria, provided all other eligibility criteria are met.
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 understand your eligibility, navigate the application process, and secure the right loan for your needs.
Take the first step toward building your new home with one of Melbourne’s most affordable home builders.
Contact us today if you’d like to learn more about First Home Guarantee eligibility and how to apply.
Current eligibility criteria:
To apply for the Home Guarantee Scheme, home buyers must be:
- applying as an individual or two joint applicants
- an Australian citizen(s), permanent resident(s), or a New Zealand citizen holding a Special Category Visa (Subclass 444)* at the time they enter the loan
- at least 18 years of age
- 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.
From 1 October 2025, income limits will no longer apply. For information on changes taking effect, click here.
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 more than 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.
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.
Explore more grants and incentives
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.
Family Home Guarantee (FHG)*
If you’re a single parent or eligible guardian with children, the Family Home Guarantee could help you secure a place to call your own. With a deposit as low as 2%*, it’s designed to make home ownership more achievable for families across Victoria.
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.
Find out if you're eligible
Together with our partners at Resolve Finance, we will guide you through the process