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Home Guarantee Scheme: A Game Changer for First Home Buyers in Australia

What is the Home Guarantee Scheme?

The Home Guarantee Scheme (HGS) is an Australian Government initiative designed to support eligible home buyers enter the property market sooner. Managed by the National Housing Finance and Investment Corporation (NHFIC), the scheme allows qualified buyers to purchase a home with as little as 5% deposit, without the need to pay Lenders Mortgage Insurance (LMI) - a cost that can run into thousands.

 

Types of Guarantees Under the Scheme (2025)

As of 2025, the Home Guarantee Scheme includes three main streams:

  1. First Home Guarantee (FHBG)

    • For first home buyers purchasing a new or existing home

    • Minimum 5% deposit

    • No LMI

    • 35,000 places available annually

  2. Family Home Guarantee (FHG)

    • Supports eligible single parents or single legal guardians

    • Minimum 2% deposit

    • 5,000 places annually

  3. Regional First Home Buyer Guarantee (RFHBG)

    • For first home buyers purchasing in regional areas

    • Minimum 5% deposit

    • 10,000 places annually

 

Who is Eligible?

To qualify for one of the Home Guarantee Scheme streams in 2025, buyers generally must:

  • Be an Australian citizen or permanent resident

  • Be 18 years or older

  • Earn under $125,000 (single) or $200,000 (couple) per year

  • Intend to live in the property

  • Be purchasing under the property price caps set for each area

Tip: You don’t have to be buying a brand-new home - established homes are included (varies by stream).

 

What Are the Benefits?

✅ Buy Sooner - Avoid saving a 20% deposit
✅ No LMI - Save thousands in upfront costs
✅ Government Backing - Peace of mind and less risk for lenders
✅ Available Across Australia - Metro, regional, and remote areas covered

 

What Properties Are Eligible?

Eligible property types include:

  • Existing houses, townhouses or apartments

  • House and land packages

  • Land with a separate contract to build

  • Off-the-plan dwellings

 

How to Apply

Applications for the Home Guarantee Scheme are made through participating lenders or their accredited mortgage brokers. There are currently over 30 lenders participating in the scheme, including major banks and smaller institutions.

It’s essential to act fast - places are limited and fill up quickly each year.

 

Is It Right for You?

The Home Guarantee Scheme has helped over 150,000 Australians get into their first home without the traditional 20% deposit hurdle. If you've been struggling with saving a large deposit, this could be the pathway to home ownership you’ve been waiting for.

 

Final Thoughts

The Home Guarantee Scheme continues to be one of the most powerful government supports for aspiring homeowners in Australia. Whether you’re a first home buyer, a single parent, or looking to buy regionally, it’s worth exploring if you qualify.

 

Need Expert Help?

Not sure if you're eligible or which lender to go with? Speak with us, an experienced mortgage broker who understands the scheme inside out and can help you secure your place before they run out.

 

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