- [email protected]
- 07 3356 6666
- 1 Fifth Avenue, Kedron Qld 4031
A Guide to the Home Guarantee Scheme in Australia
Government Support for First Home Buyers
The Home Guarantee Scheme (HGS) is an Australian Government initiative designed to assist eligible home buyers to purchase a home sooner by offering guarantees on home loans, thereby reducing the required deposit. The intention of the scheme is to support lower to middle-income earners achieve their home ownership dreams.
Three separate guarantees sit under the HGS, all administered by Housing Australia and delivered through participating lenders:-
First Home Guarantee (FHBG)
First-time buyers or buyers who have not owned property in the past 10 years.
Minimum deposit: 5%
Key income limit*: $125k single / $200K joint
Qld Price Cap (Brisbane, Gold Coast & Sunshine Coast / Other regional Qld): $700k / $550k
Regional First Home Buyer Guarantee (FHBG)
Buyers purchasing in a regional area who have lived there, or an adjacent region, for 12 months**
Minimum deposit: 5%
Key income limit*: $125k single / $200K joint
Qld Price Cap (Brisbane, Gold Coast & Sunshine Coast / Other regional Qld): $700k / $550k
Family Home Guarantee (FHG)
Single parents or single legal guardians with ≥ 1 dependent.
Minimum deposit: 2%
Key income limit*: $125k
Qld Price Cap (Brisbane, Gold Coast & Sunshine Coast / Other regional Qld): $700k / $550k
*Based on most recent ATO Notice of Assessment.
**Exemptions may apply. Contact us for more information.
Source: Information sourced from Housing Australia and are current as at 16 May 2025.
How the Guarantees Work
Housing Australia works with participating lenders to offer a guarantee to home buyers who meet the specified eligibility criteria, but don’t have the 20% deposit typically required for a home loan.
Housing Australia will guarantee up to 15% of the value of a home loan for the First Home Guarantee (FHG) or the Regional First Home Buyer Guarantee (RFHBG); and up to 18% for the Family Home Guarantee (FHG).
The guarantees allow home buyers to borrow with only the minimum deposit shown above while avoiding Lender’s Mortgage Insurance (LMI).
Note:
– The guarantee is not a cash payment.
– Not all lenders participate in the scheme.
– Home Guarantee Scheme applications are not lodged via Housing Australia. As professional mortgage brokers, we help clients prepare and submit HGS applications in conjunction with their chosen lender.
General Eligibility Checklist
To qualify, you must meet a number of criteria:
- Be an Australian citizen or permanent resident, aged 18+
- Meet the relevant income cap (as per table above) – you must provide your Notice of Assessment from the previous financial year as evidence.
- Intend to live in the home as an owner occupier – Time frames apply in which you must move into the property as your primary residence.
- Have the minimum deposit saved from genuine funds (lenders may ask for more based on your circumstances).
- Satisfy the prior-ownership rules for each guarantee.
Acceptable Property Types
Under the Home Guarantee Scheme, applicants can buy a residential property, including:
- An existing house, townhouse or apartment
- A house and land package
- Land and a separate contract to build a home
- An off-the-plan apartment or townhouse
Note: Specific time frames, contract conditions and criteria apply to different property types.
Property Price Caps
The FHBG imposes maximum purchase price limits, which vary depending on the property’s location. These caps are designed to ensure that the scheme supports the purchase of modest homes. Below are the property price caps for major cities on the East Coast of Australia (as at 15 May 2025):
Sydney (NSW): $900,000
Melbourne (VIC): $800,000
Brisbane, Gold Coast & Sunshine Coast (QLD): $700,000
Lower caps apply for regions outside these major cities, eg. the cap for regional Queensland is $550,000. While these limits are intended to support buyers in purchasing modest homes, in markets where property prices are consistently higher, many potential buyers remain ineligible for the scheme and may need to look at alternative options such as LMI or a low-deposit home loan if their deposit is less than 20%.
If you’re navigating these challenges or need guidance on how best to leverage your financial options in today’s competitive property market, our team at Aspire Mortgage and Finance are here to help.
Get in Touch Today
Let's tailor a strategy to help you buy your dream home sooner.