South Australia First Home Guarantee Laws (2026)
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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.
How South Australia differs from federal law
SA residents can access both the federal First Home Guarantee (formerly First Home Loan Deposit Scheme) and state-level concessions including the First Home Owner Grant (FHOG) and stamp duty concessions.
- The SA First Home Owner Grant provides a $15,000 grant for the purchase or construction of a new residential property valued up to $650,000 (amounts subject to change). This is administered by RevenueSA.
- SA offers stamp duty relief for first home buyers: no stamp duty on properties valued at or below $350,000, with graduated relief for properties up to $550,000. This is significantly more generous than the concessions in NSW or Victoria.
- The federal First Home Guarantee allows eligible buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance, with the Government guaranteeing up to 15% of the property value.
- The federal First Home Super Saver Scheme (FHSSS) allows eligible individuals to withdraw voluntary super contributions (up to $50,000) for their first home deposit.
Additional Steps in South Australia
Apply for the SA FHOG through RevenueSA (revenuesa.sa.gov.au) when you settle on your property. For the federal First Home Guarantee, apply through a participating lender (housingaustralia.gov.au). FHSSS withdrawal requests go through the ATO.
Relevant Law: First Home Owner Grant Act 2000 (SA); Stamp Duties Act 1923 (SA); National Housing Finance and Investment Corporation Act 2018 (Cth)
Common Questions
What is the first home guarantee right in Australia?
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...
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.