First Home Buyers Guarantee

First Home Buyers Guarantee

The Home Guarantee Scheme allows eligible first home buyers to purchase a home with a deposit of as little as 5% of the property's value, eliminating the need for Lenders Mortgage Insurance (LMI). Housing Australia provides a guarantee to the participating lender for up to 15% of the property's value, acting as a guarantor for the home loan. The guarantee helps first home buyers enter the property market sooner. Eligibility criteria generally include being a first-time buyer (or not having owned property in the last 10 years), meeting income thresholds, and applying through a participating lender. The expanded First Home Guarantee is set to start on October 1, 2025.

How it Works

1. Deposit: You save a minimum deposit of 5% of the property's value.
2. Guarantee: You apply for the First Home Guarantee through a participating lender.
3. Government Guarantee: Housing Australia provides a guarantee to the lender, covering the remaining portion of the deposit (up to 15%) in the event of a loan default.
4. No LMI: This guarantee means you don't have to pay for Lenders Mortgage Insurance, which would otherwise be required for a deposit under 20%.

Who is Eligible

• First Home Buyer: You must be a first home buyer or haven't owned property in Australia for the past 10 years.
• Individuals or Joint Applications: You can apply alone or with another eligible person, such as friends, siblings, or other family members.
• Income Limits: You must meet specific income thresholds (e.g., up to $125,000 for singles or $200,000 for joint applicants, with the specific limits depending on the year).
• Property Type: You can purchase a new or existing home.

Key Details

• Launch Date: The expanded First Home Guarantee, which removes income and property price caps for all first home buyers, begins on October 1, 2025.
• Number of Places: The government makes a set number of guarantee places available each year (e.g., 35,000 per year).
• Participating Lenders: You must apply through one of the scheme's participating lenders.
• Occupancy Requirement: The home purchased under the guarantee must be your primary residence; you cannot live in the home for a short period and then rent it out, as there are penalties for this.

We're Here For You

Talking to a mortgage broker about purchasing your first home is always a great idea. We're happy to give you the benefit of our knowledge, even if you're not quite ready to buy. You can ask us to help you create a budget, establish a plan to clear off your credit card and other debts, and save a deposit. When you're ready, we are here to help you secure a loan and choose a home that you can realistically afford, given your income and personal financial circumstances. Get an expert on your team by calling us today!