If saving a 20% deposit feels out of reach, the Home Guarantee Scheme (HGS) could be your way into the property market sooner.
It’s designed to give more Australians a real chance at homeownership, without the years of saving that usually stand in the way.
From 1 October 2025, the scheme is expanding in a big way:
- Unlimited places (no more waiting lists)
- No income caps for first-home buyers
- Higher property price caps to reflect today’s market
- Simpler access for regional buyers
The scheme lets you buy a home with as little as 5% deposit if you’re a first-home buyer or 2% if you’re a single parent, without paying Lenders Mortgage Insurance (LMI).
LMI is a fee that lenders usually charge when you borrow more than 80% of a property’s value. It protects the lender (not you) if you can’t make repayments, and it can add tens of thousands of dollars to the cost of buying a home. The scheme removes that extra cost, so your money goes towards your home instead.
What Is The Home Guarantee Scheme?
The Home Guarantee Scheme (HGS) is an Australian Government initiative by Housing Australia, designed to help eligible buyers purchase a home sooner.
From 1 October 2025, there will be two main schemes under Home Guarantee Scheme:
- First Home Guarantee allows first-home buyers to purchase with at least a 5% deposit and avoid Lenders Mortgage Insurance (LMI). Regional buyers are included, as the Regional First Home Buyer Guarantee has been merged with this scheme.
- Family Home Guarantee helps single parents or legal guardians with at least one dependent buy a home with as little as a 2% deposit without paying LMI.
How Many Scheme Places Are Available?
From 1 October 2025, there are no limits on places under the Scheme.
You can apply anytime if you’re eligible and have the minimum deposit.
Home Guarantee Scheme Eligibility
First Home Guarantee (FHBG)
- 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: No income caps apply from 1 October 2025. Currently, 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: See updated table below.
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: No income caps apply from 1 October 2025. Currently, 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: See updated table below.
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.
What Are The Price Caps For The Home Guarantee Scheme?
| Region | Current Property Price Cap | New Property Price Cap (1 Oct 2025) |
|---|---|---|
| NSW – Sydney & regional centres (Newcastle, Lake Macquarie & Illawarra) | $900,000 | $1,500,000 |
| NSW – rest of state | $750,000 | $800,000 |
| VIC – Melbourne & regional centre (Geelong) | $800,000 | $950,000 |
| VIC – rest of state | $650,000 | $650,000 |
| QLD – Brisbane & regional centres (Gold Coast & Sunshine Coast) | $700,000 | $1,000,000 |
| QLD – rest of state | $550,000 | $700,000 |
| WA – Perth | $600,000 | $850,000 |
| WA – rest of state | $450,000 | $600,000 |
| SA – Adelaide | $600,000 | $900,000 |
| SA – rest of state | $450,000 | $500,000 |
| TAS – Hobart | $600,000 | $700,000 |
| TAS – rest of state | $450,000 | $550,000 |
| ACT | $750,000 | $1,000,000 |
| Northern Territory | $600,000 | $600,000 |
| Jervis Bay Territory & NorfolkIsland | $550,000 | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 | $400,000 |
Buy Sooner With A Lower Deposit
What Are The Benefits of the Home Guarantee Scheme?
The benefits of the Home Guarantee Scheme are:
- You can buy a home with as little as 2% or 5% deposit.
- You don’t have to pay LMI, saving you tens of thousands of dollars.
- You can enter the property market sooner instead of waiting to save a 20% deposit.
- There are unlimited scheme places available from October 2025, so you won’t miss out.
- The higher property price caps, effective 1 October 2025, gives you more choice in expensive markets.
- There are no income caps for home buyers, so more Australians can qualify.
How Much Do I Save In LMI?
| Value of the property | How much are you borrowing | LVR | LMI saved |
|---|---|---|---|
| $1,500,000 | $807,500 | 95% | $63,523 |
| $1,000,000 | $950,000 | 95% | $34,290 |
| $850,000 | $807,500 | 95% | $27,821 |
| $750,000 | $712,500 | 95% | $24,166 |
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.
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 or Family Home Guarantee.
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 Home Loan Experts, 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. 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.