The Home Guarantee Scheme is a government backed initiative to make homeownership more accessible.
The Australian property market can feel like scaling Everest, especially when you’re trying to save a 20% deposit. But what if you could get a home loan with just 5% or even 2% deposit?
The HGS makes it possible. And in this article, we are going to see how you can be eligible for this scheme and more.
What Is The Home Guarantee Scheme?
The HGS is an Australian Government initiative administered by Housing Australia, aiming to support eligible home buyers in purchasing a home sooner.
The scheme has three main programs:
First Home Guarantee: This scheme allows first-time buyers to purchase a home with as little as 5% deposit, without paying the Lenders Mortgage Insurance (LMI).
Regional First Home Buyer Guarantee: The regional first home buyer guarantee lets buyers in regional areas buy a home with a 5% deposit and waive LMI.
Family Home Guarantee: This scheme helps eligible single parents or legal guardians with at least one dependent to purchase a home with as little as a 2% deposit without LMI.
How Many Scheme Places Are Available?
Housing Australia has released 50,000 new places for the Home Guarantee Scheme for the 2025–26 financial year:
- 35,000 for the First Home Guarantee
- 10,000 for the Regional First Home Buyer Guarantee
- 5,000 for the Family Home Guarantee
Home Guarantee Scheme Eligibility
The Home Guarantee Scheme offers three types of guarantees: First Home Guarantee (FHBG), Regional First Home Buyer Guarantee (RFHBG), and Family Home Guarantee (FHG). Below are the eligibility details for each:
First Home Guarantee (FHBG) and Regional First Home Buyer Guarantee (RFHBG)
- Applicants: You can apply as an individual or as two joint applicants. Friends, siblings and other groups of family members can jointly apply.
- Residency: Must be an Australian citizen or permanent resident
- Age: Must be at least 18 years old.
- Income: Annual income must not exceed $125,000 for individuals or $200,000 for joint applicants, as stated on their most recent Notice of Assessment from the Australian Taxation Office.
- Deposit Requirement: Applicants need between 5% and 20% of the property’s value as a deposit. The minimum is 5%, but lenders may ask for a higher percentage based on financial circumstances.
- Ownership History: Applicants must be first-home buyers or previous homeowners who have not owned or had any interest in real property (including land) in Australia in the past 10 years.
- Occupancy: Must intend to live in the purchased property as an owner-occupier.
- Costs: Eligible buyers are responsible for all associated costs, such as stamp duty, application fees, and legal fees.
- Price Caps: FHBG and RFHBG have property price caps ranging from $40,000 to $900,00, which vary between states and territories.
Family Home Guarantee (FHG)
- Applicants: You must apply as an individual (no joint applicants).
- Parental status: A single parent or legal guardian of at least one dependant.
- Residency: Must be an Australian citizen or permanent resident
- Age: Must be at least 18 years old.
- Income: Annual income must not exceed $125,000, as shown on the Australian Taxation Office’s Notice of Assessment.
- Deposit Requirement: Applicants must save between 2% and 20% of the property’s value as a deposit. The minimum deposit for the FHG is 2%, but lenders may ask for a higher percentage based on financial circumstances.
- Occupancy: Must intend to live in the purchased property as an owner-occupier.
- Ownership Status: Cannot currently own any property and, upon settlement, must not intend to own any other property.
- Price Caps: FHG has property price caps ranging from $40,000 to $900,00 for regional centres, which vary between states and territories.
We can help you apply for any one of the guarantees in the Home Guarantee Scheme. 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 |
| 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 |
Having a strong credit history, without any defaults or arrears, is essential.
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What Are The Benefits of the Home Guarantee Scheme?
The primary benefit of the Home Guarantee scheme is that you get to buy a home with as little as 2% or 5% deposit. You also don’t have to pay the Lenders Mortgage Insurance, which can save you significant cost.
As a beneficiary, you also enter the property market sooner, without waiting to save for a large deposit. And for single parents and regional buyers, you get tailored assistance.
How much do I save in LMI?
| Value of the property | How much are you borrowing | LVR | LMI saved |
|---|---|---|---|
| $950,000 | $902,500 | 95% | $39,273 |
| $850,000 | $807,500 | 95% | $35,139 |
| $750,000 | $712,500 | 95% | $31,005 |
| $650,000 | $617,500 | 95% | $26,871 |
| $550,000 | $522,500 | 95% | $22,737 |
The figures in this table are estimates. You can use our LMI calculator to find out how much you save in different states and territories.
What Are The Price Caps For The Home Guarantee Scheme?
Price Caps For First Home Guarantee And Family Home Guarantee
| Region | 2025-26 Price Caps* |
|---|---|
| NSW – Sydney & regional centres (Newcastle, Lake Macquarie & Illawarra) | $900,000 |
| NSW – rest of state | $750,000 |
| VIC – Melbourne & regional centre (Geelong) | $800,000 |
| VIC – rest of state | $650,000 |
| QLD – Brisbane & regional centres (Gold Coast & Sunshine Coast) | $700,000 |
| QLD – rest of state | $550,000 |
| WA – Perth | $600,000 |
| WA – rest of state | $450,000 |
| SA – Adelaide | $600,000 |
| SA – rest of state | $450,000 |
| TAS – Hobart | $600,000 |
| TAS – rest of state | $450,000 |
| ACT | $750,000 |
| Northern Territory | $600,000 |
| Jervis Bay Territory & NorfolkIsland | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
*The 2025-26 price caps are applicable for the First Home Guarantee and Family Home Guarantee from July 2025.
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 |
How to Apply For Home Guarantee Scheme
Here’s how you can apply for the home guarantee scheme:
Check Eligibility
Check which specific guarantee you’re interested in, whether it’s the First Home Guarantee, Regional First Home Buyer Guarantee, or Family Home Guarantee.
Each of these have slightly different requirements around deposit, income caps, and property history. And rather than going it alone, you can speak to a mortgage broker like Home Loan Experts. We understand the scheme inside out.
Find a Participating Lender
Applications can only be submitted through lenders approved by Housing Australia. At Home Loan Experts, we work closely with many of these lenders and can help you with the one more likely to approve your loan.
Prepare Documentation
With the help from our brokers, you can gather all required documents, which includes ID, tax returns, payslips, and any other required documents. Getting this right up front helps to speed things along.
Submit Your Application
You now need to package and submit your application to the lender, making sure everything is accurate and optimised for approval. At HLE, our brokers do the heavy lifting for you and keep you updated every step of the way.
Ready To Apply For A Home Guarantee Scheme?
At Home Loan Experts, we specialise in helping Australians navigate complex home loan options, including securing a spot in the Home Guarantee Scheme before places run out. We’ll assess your situation, confirm your eligibility, and recommend the best lenders based on your goals.
Call us on 1300 889 743 or enquire online today.