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The first home guarantee scheme explained

First home buyers unboxing in their new home.

To help address Australia’s affordable housing crisis, the government created the First Home Guarantee scheme. 

Our first home buyer specialists are here to break down the important details into simple terms to help you see if you are eligible. 

Here is everything you need to know about this awesome scheme and how it can help you as a first time home buyer. 

What is the First Home Guarantee?

The First Home Guarantee scheme is a program run by the Australian Government. This initiative is designed to help eligible first time home buyers buy a home sooner.

Eligible buyers can qualify to purchase a home with as low as a 5% deposit and no LMI (lender’s mortgage insurance) payments. 

For the FHBG, the federal government can act as a guarantor for up to 15% of the loan. 

You may also like: The essential first home buyer’s guide

First Home Guarantee eligibility requirements

From 1 July 2023 to 30 June 2024, 35,000 FHBG homes will be made available. 

There are various First Home Guarantee eligibility criteria that apply.

Here are some of the general requirements to be eligible to apply for the FHBG: 

  • Must be a permanent resident or Australian citizen
  • Applicants must be at least 18 years of age
  • Buyers must intend to occupy the property as a residence
  • Joint applicants can earn up to $200,000 and individuals can earn up to $125,000 (shown on the Notice of Assessment from the Australian Taxation Office)
  • Buyers must not have owned a property in Australia within the past ten years
  • Can apply as an individual or two joint applicants
  • Must be buying a residential property (this includes a home, apartment, townhouse, house and land package, off-the-plan townhouse or apartment, land and a home building contract)

The National Housing Finance and Investment Corporation (NHFIC) website offers a quick questionnaire that can help you see if you meet the eligibility requirements. 

You can use the eligibility checker to see if you qualify or contact us and we can help you determine your eligibility.

First Home Guarantee 2023 price caps

The First Home Guarantee price caps are as follows:

StateCapital city and regional centre*Rest of state
NSW$900,000$750,000
VIC$800,000$650,000
QLD$700,000$550,000
WA$600,000$450,000
SA$600,000$450,000
TAS$600,000$450,000
Territory All areas
ACT $750,000
NT Regional $600,000
Jervis Bay Territory & Norfolk Island $550,000
Christmas Island and Cocos (Keeling) Islands $400,000

*Regional centres are Newcastle and Lake Macquarie, Illawarra, Geelong, Gold Coast and Sunshine Coast.

Source: NHFIC.gov.au

Regional First Home Guarantee price caps

The Regional First Home Guarantee price caps are as follows:

StateRegional centre*All other regional areas
NSW$900,000$750,000
VIC$800,000$650,000
QLD$700,000$550,000
WA $450,000
SA $450,000
TAS $450,000
Territory Regional area
ACT Not applicable
NT Regional $600,000
Jervis Bay Territory & Norfolk Island $550,000
Christmas Island and Cocos (Keeling) Islands $400,000

*Regional centres are Newcastle and Lake Macquarie, Illawarra, Geelong, Gold Coast and Sunshine Coast.

Source: NHFIC.gov.au

How to apply for the First Home Guarantee

Want to apply for the FHBG? Here’s the easiest way to do it.  

  1. Get in touch with us

Give us a call or organise a meet-up with our knowledgeable team of first time home buyer specialists. 

We can help you check your eligibility for the scheme. From there, we can help you complete your FHBG application.  

We take all the guesswork out of it and can help make the process as smooth as possible. 

  1. Submit your application

Once we confirm your eligibility for the FHBG, one of our first time home buyer specialists will help you submit your application. 

We have a thorough understanding of the eligibility criteria, participating lenders, and the entire application process. 

Our first home buyer specialists will help you fill out your application accurately and promptly so you can move forward toward home ownership. 

  1. Buy your first home

Once you determine your eligibility and get your application approved, it’s time for the fun part!  Buying or building your first home!

If your application is approved, you’ll need to buy an eligible home within 90 days of approval. 

Recent changes to the scheme

The recent changes to the FHBG and RFHBG are aimed at expanding eligibility for homeowners. 

These changes increase the number of people who will be eligible and expand the value of properties that are eligible for the FHBG. 

Some of the changes include: 

  • Starting July 1 of this year, friends, family members, and siblings can now apply jointly for the FHBG and RFHBG (previously, the FHBG was restricted to single or married applicants)
  • The scheme is now available for first home buyers who are permanent Australian residents (the program was formerly only for Australian citizens)
  • The FHBG and the Regional First Home Buyer Guarantee now include home buyers who have not owned an Australian property in the last 10 years (previously this was restricted to eligible first time home buyers) 
  • Applicants for the Regional First Home Buyer Guarantee can now be exempt from living in the region or an adjacent region for the previous 12 month period. This can be helpful for employees who had to relocate recently. This exemption was formerly only available to members of the Australian Defence Force. 

Have a question? 

Do you have questions relating to your eligibility? Or are you feeling overwhelmed by the FHBG application process? Our team of first home buyer experts is here to walk you through each step and help you realise your dream of becoming a homeowner in Australia. 

With our wide array of home design options, knowledgeable first home buyer home loan specialists, and dedicated team, we are your one-stop-shop for home ownership. 

Don’t wait to become a homeowner any longer! Call us on 0424 429 483 to speak with one of our first home buyer specialists today. We look forward to helping you!

FAQs

The Home Guarantee Scheme provides a guarantee to participating lenders, allowing eligible applicants to purchase a home with a deposit as low as 2% of the property purchase price.

The minimum deposit required for the Home Guarantee Scheme is 2% of the property purchase price.

The maximum property purchase price for the Home Guarantee Scheme varies depending on the location of the property. In Western Australia, the maximum property purchase price for the First Home Guarantee is $600,000, while the maximum for the Regional First Home Guarantee is $450,000.

Yes, Australian permanent residents are eligible to apply for the Home Guarantee Scheme.

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