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Knowledge hub / Government Grants

First Home Guarantee scheme explained

The First Home Guarantee, previously known as the First Home Loan Deposit Scheme is an Australian Government initiative designed to support thousands of eligible first home buyers to achieve home ownership sooner.

Under the First Home Guarantee scheme, 35,000 places are available to eligible first home buyers from 1 July 2022 – 30 June 2023.


How it works

Generally, Lenders Mortgage Insurance is payable when purchasing a new home with less than a 20% deposit to protect the lender. With this scheme, an eligible buyer's home loan is guaranteed by the Government, helping the buyer to enter property market with as little as 5% deposit.

This scheme is not a cash payment or a deposit for your home loan. Any guarantee of your home loan is for up to a maximum amount of 15% of the value of your property (as assessed by your lender).


Who's eligible?

You can find up to date information regarding eligibility on the nhfic.gov.au website. In general, the applicants must be:

  • applying as an individual or couple (married / de facto) 
  • an Australian citizen(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 couples, 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 who have not previously owned, or had an interest in, a property in Australia

Our team can help determine if you may eligible for the First Home Guarantee through our free assessment form.


How to apply

All applications for the First Home Guarantee need to be made directly with a Participating Lender or their authorised representative. Our partner mortgage brokers have access to a wide range of the participating lenders and can assist you with your application.


Purchase price caps

Maximum purchase prices are applicable for eligible properties purchased under the First Home Guarantee. Below we have listed price caps for Victoria, Queensland and New South Wales.

Region Price Cap
NSW-capital city, regional centres (Newcastle, Lake Macquarie & Illawarra) $900,000
NSW-other $750,000
VIC-capital city, regional centres (Geelong) $800,000
VIC-other $650,000
QLD-capital city, regional centres (Gold Coast & Sunshine Coast)  $700,000
QLD-other $550,000

You can search your location and find price caps for additional regions on the nhfic.gov.au website.


Deposits from 3%!

With the help of our Deposit Boost, the First Home Guarantee and First Home Owners Grant, you may be able to achieve home ownership from only 3% deposit. If you'd like to explore your options, click below and complete our free assessment form!

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Disclaimer: The articles featured on this website are for general information purposes only and designed to help educate our readers. Any financial decision should be considered wisely with the help of a qualified professional and based on your own personal goals and financial circumstances. Always seek proper advice before committing to any course of financial action. This is information is not to be deemed as advice. View our full disclaimer here.