Home Guarantee Scheme

How can the Guarantee assist you?

The First Home Gaurantee will allow First Home Buyers to purchase or build a home with a deposit as little as 5% and avoid paying Lenders Mortgage Insurance (LMI is a large cost usually associated with loans above 80% of the purchase price).

The Government will act as a guarantor providing a ‘guarantee’ for up to 15% of the purchase price and is the reason you won’t be required to pay Lenders Mortgage Insurance.

How does it differ from the FHLDS?

The First Home Guarantee is essentially an extension and combination of the First Home Loan Deposit Scheme (FHLDS) and the New Home Guarantee which were first introduced in 2020.

The major difference is that the First Home Guarantee has been expanded to an allocation of 35,000 places and applies to both purchases of established homes and construction of new builds.

How can the Guarantee assist you?

The Regional Home Gaurantee provides the same Guarantee as the First Home Guarantee. It will allow either regional buyers (who have not owned a home in the last 5 years) or First Home Buyers to purchase a new home or build a home with a deposit as little as 5% and avoid paying Lenders Mortgage Insurance.

As above, the Government will act as a guarantor providing a ‘guarantee’ for up to 15% of the purchase price.

The allocation under this Guarantee is 10,000 places.

How can the Guarantee assist you?

The Family Home Gaurantee is simply an extension of last years Guarantee which expands to 5,000 places each year.

This Guarantee varies slightly from the two above as it allows single parents to purchase a home with a deposit as little as 2% and avoid paying Lenders Mortgage Insurance.

Under this scheme the Government will provide a ‘guarantee’ for up to 18% of the purchase price.

Under all three Guarantee’s within the scheme:

• Single applicants will be eligible as long as their taxable income is less than $125,000.
• Couples will be eligible as long as their joint taxable income is less than $200,000.

Scheme eligibility will also be capped based on the purchase price that will vary depending on the region.

The purchase price caps that will apply during the 2022-23 financial year are as follows:

NSW
Capital city and regional centres – $900,000
Rest of state – $750,000

Victoria
Capital city and regional centres – $800,000
Rest of state – $650,000

Qld
Capital city and regional centres – $700,000
Rest of state – $550,000

WA
Capital city and regional centres – $600,000
Rest of state – $450,000

SA
Capital city and regional centres – $600,000
Rest of state – $450,000

Tasmania
Capital city and regional centres – $600,000
Rest of state – $450,000

ACT
Capital city and regional centres – $750,000

NT
Capital city and regional centres – $600,000

Jervis Bay Territory and Norfolk Island – $550,000

Christmas Island and Cocos (Keeling) Islands – $400,000

• To be eligible for any Guarantee under the Home Guarantee Scheme, the applicant must be purchasing the home to live in (not as an investment property).
• With the exception of the Regional Home Guarantee which is available for permanent residents, the scheme is restricted to Australian Citizens.
• We will continue to update our website with information as it becomes available but at this stage the Government are working with lenders towards an allocation release date in October.