First Home Guarantee

Not enough savings to purchase your first home?

the Home Guarantee Scheme (HGS) may be able to help you purchase your dream home sooner. One of the key components of the HGS is the First Home Guarantee (FHBG), which is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.

Under the FHBG, eligible home buyers can purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance. The NHFIC guarantees part of the home loan from a Participating Lender, up to a maximum of 15% of the property’s assessed value. It’s important to note that this guarantee is not a cash payment or deposit for a home loan.

Who can apply?

To be eligible for the FHBG:

  • you must be an Australian citizen(s) at the time you enter the loan, at least 18 years old,
  • earning up to $125,000 for individuals or $200,000 for couples, and intending to be an owner-occupier of the purchased property. 
  • Additionally, you must be a first home buyer who has not previously owned or had an interest in a property in Australia.

Which property is eligible and price caps?

The FHBG is available for various types of residential properties, including existing houses, townhouses, apartments, house and land packages, land with a separate contract to build a home, and off-the-plan apartments or townhouses. Each location has a different property price cap, which can be looked up using the Property Price Cap Tool.

Applications for the FHBG can only be made with a Participating Lender or their authorised representative (a mortgage broker). NHFIC does not accept applications or provide personal financial advice. Therefore, it’s essential to consult with a Participating Lender and seek independent financial and legal advice before entering into a home loan agreement.

Home buyers applying for the FHBG need to have between 5% and 20% of the property’s value saved as a deposit. The minimum deposit required for the FHBG is 5%, but Participating Lenders may require a higher percentage based on individual financial circumstances. It’s crucial to speak with a Participating Lender to find out whether a deposit is made up of genuine savings and whether any cash grants received under other Australian Government, State or Territory schemes or programs can be considered as part of your genuine savings.

Finally, it’s important to note that there is an income test included in the HGS, which is assessed by lenders using a Notice of Assessment (NOA) issued by the Australian Taxation Office (ATO). For HGS reservations made from 1 July 2022 to 30 June 2023, the relevant NOA is the 2021-2022 financial year. NHFIC advises applicants to speak to their Participating Lender to understand the risk of signing a Contract of Sale before obtaining the latest NOA.

In summary, the FHBG is an excellent opportunity for eligible first home buyers in Australia to purchase their dream home sooner. However, it’s essential to do your due diligence and seek professional advice before entering into any home loan agreement. Contact a Participating Lender for more information and to discuss your individual circumstances.

For more information please go to NHFIC website

02 9758 2182
Free credit report
Free valuation report
Direct to broker