First Home Guarantee

Previously ‘First Home Loan Deposit Scheme’

The First Home Guarantee Scheme helps eligible homebuyers build or buy their new home with a minimum 5% deposit. Previously known as the First Home Deposit Scheme, this is part of a suite of Home Guarantee schemes the federal government has made available which also includes the Family Home Guarantee for single parents. As of 1 July 2024, the scheme has been expanded by increasing the property price cap and eligibility – now any two eligible people may apply together and not only married or defacto couples – but only 35,000 places are available yearly. As with other schemes, there are property price caps and applicant criteria to meet which we look into in greater detail here.*

For further details on the First Home Guarantee Scheme, please visit the official Housing Australia website.

*The information on this website regarding first home buyer grants and schemes provided by Hallmark Homes is for general information purposes only. It is not financial advice. Consult with qualified financial advisors for personalised guidance.

minimum deposit.

No LMI

Lenders Mortgage Insurance waived.

$700,000

Property Cap in Brisbane, Gold Coast and Sunshine Coast.

How does the First Home Guarantee Scheme work?

Administered by the federal government, the First Home Guarantee Scheme is designed to break down barriers to homeownership for first-home buyers by enabling them to purchase their first home with just a 5% deposit, and also, without having to pay Lenders’ Mortgage Insurance (LMI).

LMI is usually applicable when borrowing more than 80% of the property value (i.e., borrowing with less than 20% deposit) and is calculated as a percentage of the loan and varies depending on the total amount of the loan and the Loan to Value Ratio (LVR). However, with the First Home Guarantee Scheme, the Government acts as a guarantor so that you don’t have to pay LMI.

Frequently Asked Questions

First Home Guarantee Scheme eligibility

As with other state and federal government schemes, property caps apply, which in Queensland are now (as of 1 July 2024) $700,000 in Brisbane, Gold Coast and Sunshine Coast, and $550,000 in other areas. In terms of applicant eligibility for the First Home Guarantee, the following applies:

You must be aged 18 years or older and a natural person (not a company or trust)
You (and other applicants) must be an Australian citizen or permanent resident
You need to meet income test requirements for the previous financial year – singles must have a taxable income less than $125,000 and couples an income less than $200,000
You (or your partner) must not have previously owned property in Australia for the past ten years. This not only includes residential property, but also investment and commercial property.

How to apply for the First Home Guarantee

To apply for the First Home Guarantee you’ll need to either apply directly through one of the Scheme’s participating lenders or if you’re working with a mortgage broker, they can advise you.