Home Guarantee Scheme: How it works and new changes

The Home Guarantee Scheme is one of the best tools available to help Aussies break into the property market—without needing a massive deposit. With just 2–5% savings, eligible buyers can purchase a home and avoid paying Lenders Mortgage Insurance (LMI), which can often cost thousands.

Whether you’re a first home buyer or returning to the market after a long break, this government-backed initiative could be your ticket to homeownership.

How it works

The scheme works by having the government guarantee part of your home loan (usually 15–18%). This means you can:

Buy with as little as 5% deposit (or 2% for single parents and legal guardians)

Avoid LMI, which is normally required when you have less than 20% deposit

Get into the market sooner, especially when paired with other grants and incentives

Types of guarantees

There are three types of support under the scheme:

1. First Home Guarantee

For eligible first home buyers (or those who haven't owned property within 10 years)
Buy with just 5% deposit
35,000 places available nationwide this financial year

2. Regional First Home Buyer Guarantee

For buyers purchasing in eligible regional areas
5% deposit required
10,000 places available this financial year

3. Family Home Guarantee

For single parents or legal guardians with at least one dependent
Buy with just 2% deposit
5,000 places available this financial year

Eligibility criteria

To qualify for the scheme, you generally need to meet the following:

Be at least 18 years old
Be an Australian citizen or permanent resident
Be a first home buyer or not have owned property in Australia in the last 10 years
Apply as an individual or with a partner, family member, or friend (as long as all applicants are eligible)
Intend to live in the home as an owner-occupier
Meet the income cap:
- $125,000 for individuals
- $200,000 for couples (combined)

Upcoming scheme expansion

The government has proposed some exciting updates to the scheme, expected to begin from July 2025 (pending confirmation):

No more income caps – All first home buyers could soon qualify, regardless of how much they earn

Higher property price caps – Making it easier to buy in more suburbs and regions, as limits are adjusted to match today’s market conditions

These changes are set to make the scheme more inclusive and accessible, helping more Australians step into homeownership.

How to apply

Applications can only be made through a participating lender or via an authorised mortgage broker.

Our qualified lending specialists are here to guide you through the process, including checking your eligibility and combining the scheme with other grants (like the First Home Owner Grant or our very own $10,000 Deposit Boost).

Property price caps

Property price caps apply and vary depending on the state and region. You can check your local limits here at housingaustralia.gov.au.

Own sooner, with less savings

Pairing the Home Guarantee Scheme with our $10,000 Deposit Boost and other government incentives means you could own a home sooner—and with less upfront savings than you thought possible.

Take the first step and find out if you’re eligible. It only takes a few minutes to get started.

Pre-qualify