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Posted 4th May 2023

Home Guarantee Scheme: How it works and eligibility

The Home Guarantee Scheme is a government initiative supporting eligible home buyers to purchase property with 2-5% deposit. The scheme is available to first home buyers or previous homeowners who haven’t owned a property in Australia in the past 10 years.

How the scheme works

In this day and age, many banks will accept a deposit of 5-10%. In this instance, lenders mortgage insurance would be payable. This type of insurance protects the lender if in the instance you were no longer able to meet your home loan obligations.

Under the Home Guarantee Scheme, the government acts as guarantor on a portion (15-18%) of your home loan. This allows home buyers to buy a home with 2-5% deposit while avoiding lenders mortgage insurance.

The Home Guarantee Scheme includes:

First Home Guarantee – to support eligible first home buyers to buy a home, with a 5% deposit. 35,000 places are available this financial year.
Regional First Home Buyer Guarantee - to support eligible regional first home buyers to buy a home in a regional area, with a 5% deposit. 10,000 places are available this financial year.
Family Home Guarantee – to support eligible single parents with at least one dependent child to buy a home, with a 2% deposit. 5,000 places are available this financial year.

 

What's the criteria?

In order to be eligible, you will also need to meet the following:

  • At least 18 years of age
  • Australian citizens or permanent residents
  • First home buyers or previous homeowners who haven’t owned a property in Australia in the past 10 years
  • Individual and joint applicants - may include a partner, friend or family member (provided all buyers meet the criteria)
  • Earning up to $125,000 for individuals or $200,000 for couples
  • Intending to be owner-occupiers of the purchased property
Family home guarantee only
  • Available to single parents or single legal guardians of at least one dependent who do not currently own a property or do not intend to own a separate property when they settle on the home.

 

How to apply

All applications for the Home Guarantee Scheme need to be made directly with a participating lender or through an authorised representative, such as a mortgage broker. Our qualified lending specialists can assist you with applying for the Home Guarantee Scheme and any additional government grants.

 

Purchase price caps

Maximum house price caps are applicable for properties purchased under the Home Guarantee Scheme. You can search your location and find price caps for additional regions on the nhfic.gov.au website.

Visit nhfic.gov.au

 

Deposits from $10k!

By taking advantage of our Deposit Boost, combined with the Home Guarantee Scheme and First Home Owners Grant, you may only need $10,000 savings to secure your own home. Find out if you qualify in a few simple steps!

Get Free Assessment ›

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.