The government introduced the Home Guarantee Scheme to help borrowers with a deposit of at least 2% qualify for a home loan without paying Lenders Mortgage Insurance (LMI).
Typically, to avoid paying LMI, you need a 20% deposit. However, under the scheme, eligible borrowers can avoid LMI even with a deposit as small as 2%, since the government will guarantee up to 18% of the value of the property.
Home Guarantee Scheme Expands Eligibility For 2023-24
The federal government has announced changes to the Home Guarantee Scheme. The changes will greatly expand the number of people eligible to participate in the scheme. From 1 July 2023:
Friends, siblings and other groups of family members can jointly apply for the First Home Guarantee and Regional First Home Buyer Guarantee.
Non-first-home buyers who have not owned property during the last 10 years can also apply.
Borrowers who are single legal guardians of children – such as their aunts, uncles and grandparents – can apply for the Family Home Guarantee.
Australian permanent residents are eligible to apply for all three schemes: First Home Guarantee, Regional First Home Guarantee and Family Home Guarantee.
With the expansion of the eligibility criteria, owning a home could be within reach for many more buyers. To find out if you can apply, call us on 1300 889 743 or complete our free assessment form today.
Here is a summary of the three plans.
Details
First Home Guarantee
Family Home Guarantee
Regional First Home Buyer Guarantee
What is the minimum deposit?
5%
2%
5%
What type of property is accepted?
A new or existing home
A new or existing home
A new or existing home
How many places are available? (from 1 July 2024)
35,000 each year
5,000 each year
10,000 each year from 1 July 2024
Who can apply?
Single people or couples
Single parent with at least one child dependant
Single people or couples
Is it only for first home buyers?
Yes
First-home buyers or previous homeowners who do not currently own a home
Yes
Are there location restrictions?
No
No
Yes, you can buy only in regional areas
Limited Spots. Don’t Miss Out. Reserve Your Spot Today!
Typically, to avoid paying LMI, you need a 20% deposit. Under the scheme, you can avoid LMI even with a deposit as small as 2%
Reserve Your Spot Today!
Is the New Home Guarantee part of the Home Guarantee Scheme?
No, the New Home Guarantee is not included in the Home Guarantee Scheme.
The New Home Guarantee was an extension of the First Home Guarantee that was introduced during the pandemic. Under this scheme, first-home buyers could only build or purchase new homes.
The New Home Guarantee ended on 30 June 2022.
What Are The Benefits of the Home Guarantee Scheme?
You don’t have to wait and save for a large deposit.
The three different plans cater to borrowers with different property ownership histories.
*The 2024-25 price caps are applicable for the First Home Guarantee and Family Home Guarantee from July 2024.
Price Caps For Regional First Home Buyer Guarantee
State
Regional Centre*
All Other Regional Areas
New South Wales
$900,000
$750,000
Victoria
$800,000
$650,000
Queensland
$700,000
$550,000
Western Australia
-
$450,000
South Australia
-
$450,000
Tasmania
-
$450,000
*Regional centres are Newcastle and Lake Macquarie, Illawarra, Geelong, Gold Coast and Sunshine Coast.
Territory
All Areas
NT Regional
$600,000
Jervis Bay Territory & Norfolk Island
$550,000
Christmas Island & Cocos (Keeling) Islands
$400,000
ACT
Not applicable
What Is The First Home Guarantee (First Home Loan Deposit Scheme)?
The First Home Guarantee (formerly known as the First Home Loan Deposit Scheme), helps first-home buyers with a deposit as low as 5% buy a home without paying Lenders Mortgage Insurance (LMI).
First Home Guarantee
Details
When was it introduced?
It was first introduced on 1 January 2020 as the First Home Loan Deposit Scheme, but is now known as First Home Guarantee.
Who can apply?
Australian citizens who are first-home buyers
What is the income cap?
Single applicants with an annual taxable income of less than $125,000 or less than $200,000 for couples
How many places are available?
35,000 places from 1 July 2024.
For more information on the First Home Guarantee (previously known as the First Home Loan Deposit Scheme), go here.
What Is The Family Home Guarantee?
The Family Home Guarantee helps single parents with children as dependants buy an existing home or build a new one with a deposit as low as 2%.
Family Home Guarantee
Details
When was it introduced?
1 July 2021.
Who can apply?
Australian citizens who are single parents and either first-home buyers or previous homeowners who do not currently own a home
What is the income cap?
Annual taxable income must not exceed $125,000
How many places are available?
In 1 July 2024, 5,000 places are available each year through 30 June 2025.
For more details, about the Family Home Guarantee, go here.
What Is The Regional First Home Buyer Guarantee?
The Regional First Home Buyer Guarantee allows you to buy or build a new home in a regional area with at least a 5% deposit.
Regional Home Guarantee
Details
When was it introduced?
It was introduced during the 2022 federal elections
Who can apply?
Australian citizens who are first-home buyers
What is the income cap?
Single applicants with an annual taxable income of less than $125,000 or couples with less than $200,000
How many places are available?
10,000 places each year from 1 July 2024 through 30 June 2025.
For more details about the Regional Home Guarantee, go here.
How To Apply For The Home Guarantee Scheme
You will need to send your application to a participating lender. We can help you with your application. Call us on 1300 889 743 or enquire online today.
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