The First Home Guarantee and Other Federal Schemes

The Federal Government’s Home Guarantee Scheme helps eligible Australians get into the property market sooner by reducing the deposit required and avoiding LMI. The scheme has three components:

First Home Guarantee (FHBG)

Housing Australia (formerly NHFIC) guarantees up to 15 % of the property value, allowing first‑home buyers to purchase with as little as a 5 % deposit and avoid LMI housingaustralia.gov.au. Eligibility includes:

• Being an Australian citizen or permanent resident and over 18;

• Buying a property to live in;

• Having not owned a property in Australia in the last 10 years housingaustralia.gov.au;

• Meeting income caps ($125,000 for singles and $200,000 combined for couples);

• Buying within price caps that vary by region.

  
  

Regional First Home Buyer Guarantee

For 2024–25 the government has allocated 10,000 places to support first‑home buyers purchasing in regional areas. Eligibility is similar to the FHBG but applicants must intend to live in a regional areafundd.com.au.

Family Home Guarantee

This scheme helps single parents or legal guardians purchase a home with a 2 % deposit. Up to 5,000 places are available in 2024–25fundd.com.au. Applicants must meet income caps and be an Australian citizen or permanent resident.

Benefits of using a broker

Government schemes have strict eligibility rules and limited places. A mortgage broker stays up to date with changes (like the expansion of the Home Guarantee Scheme from 1 October 2025 money.com.au) and can guide you through applications. They also identify lenders participating in these schemes and ensure your loan application aligns with the scheme’s timeframes.