First Home Guarantee in Australia
Reviewed by the Commoner Law Editorial Team. Sourced from Commonwealth Acts of Parliament, federal regulations, and official government guidance. State-level information reflects each state's own Acts and court decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
The First Home Guarantee — formerly the First Home Loan Deposit Scheme — lets eligible first-home buyers in with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). The Commonwealth, through Housing Australia, guarantees up to 15% of the property value back to the lender — which is what makes the LMI waiver work commercially.
Eligibility: Australian citizen aged 18+, single income up to $125,000 (or $200,000 combined for couples), and you can never have previously owned property in Australia. The property has to come in under the regional price caps — currently up to $900,000 in Sydney and $800,000 in Melbourne, with caps reviewed annually.
35,000 places open each financial year. They're allocated first-come, first-served — and they go fast. You apply through a participating lender, never directly through the government.
The sister scheme — the Regional First Home Buyer Guarantee — adds 10,000 places a year for buyers outside the capitals, on the same 5% deposit terms.
When does it apply?
- You are buying your first home and have never owned property in Australia.
- Your income is at or below $125,000 (single) or $200,000 (couple) in the previous financial year.
- You have saved at least a 5% deposit (but less than 20%).
- The property is below the price cap for your city or region.
- You intend to be an owner-occupier — investment properties are not eligible.
What to Do If You Are Declined for the Australian First Home Guarantee
- Check your eligibility on the Housing Australia website before house-hunting.
- Apply through a participating lender — the list is on the Housing Australia website and includes major banks and smaller lenders.
- Confirm the price cap for the area where you want to buy; caps differ between capital cities and regional areas.
- Move quickly — places fill up fast each financial year. New places open on 1 July.
- Combine with state first-home-buyer grants if applicable — the federal guarantee does not prevent you from claiming state incentives.
What should you NOT do?
- Don't apply directly to the government — the scheme only works through participating lenders.
- Don't assume the guarantee is a cash grant — the government does not give you money; it guarantees part of your loan to the lender.
- Don't buy an investment property under the scheme — you must live in the home. If you move out within the guarantee period you may need to refinance.
- Don't forget income caps apply to the previous financial year — check your ATO notice of assessment.
Use the jurisdiction bar at the top of the page to pick your state — you'll see how state law differs from Australian federal law.
6 states available
Common Questions
When does first home guarantee apply?
You are buying your first home and have never owned property in Australia.Your income is at or below $125,000 (single) or $200,000 (couple) in the previous financial year.You have saved at least a 5% deposit (but less than 20%).The property is below the price cap for your city or region.You intend to be an owner-occupier — investment properties are not eligible.
What should I do if I am rejected for the First Home Guarantee in Australia?
Check your eligibility on the Housing Australia website before house-hunting.Apply through a participating lender — the list is on the Housing Australia website and includes major banks and smaller lenders.Confirm the price cap for the area where you want to buy; caps differ between capital cities and regional areas.Move quickly — places fill up fast each financial year. New places open on 1 July.Combine with state first-home-buyer grants if applicable — the federal guarantee does not prevent you from claiming state incentives.
What mistakes should I avoid with first home guarantee?
Don't apply directly to the government — the scheme only works through participating lenders.Don't assume the guarantee is a cash grant — the government does not give you money; it guarantees part of your loan to the lender.Don't buy an investment property under the scheme — you must live in the home. If you move out within the guarantee period you may need to refinance.Don't forget income caps apply to the previous financial year — check your ATO notice of assessment.
First Home Guarantee in other states
Same topic, different jurisdiction. Pick the one that applies to you.