Home Guarantee Scheme – Update 2023
Key points in this blog 
- 50,000 new places available to first home buyers (35,000), regional first home buyers (10,000) as well as single parents and guardians (5,000) every financial year.
- Under the scheme, first home buyers and regional first home buyers can apply for a home loan with a deposit as low as 5%.
- Single parents and guardians can apply for a home loan with a deposit of just 2%.
- No requirement to pay Lenders Mortgage Insurance.
- Read on for more info…
What is the Home Guarantee Scheme?
The Home Guarantee Scheme (HGS) is an initiative of the Australian government to support and help first-home buyers purchase a home sooner. The scheme is operated by the National Housing Finance and Investment Corporation (NHFIC).
The HGS currently includes three other schemes – The First Home Guarantee (FHBG), the Regional First Home Buyer Guarantee (RFHBG), and the Family Home Guarantee (FHG).
Under the Home Guarantee Scheme:
- Australians will have access to 50,000 new places every financial year.
- Of those, 35,000 places will be available to eligible first-time home buyers under the FHBG.
- 10,000 will be available to eligible regional first-time home buyers under the RFHBG
- And 5,000 will be available to eligible single parents and guardians with at least one dependent child under the FHG.
Not every lender has allocations under this scheme. If you’d like to apply, be sure to speak with your Nectar mortgage broker for expert assistance in finding an appropriate lender and home loan to suit your individual circumstances.
You can find the full list of participating lenders here.
The First Home Guarantee (FHBG) and the Regional First Home Guarantee (RFHBG)
The FHBG is set up by the Government to help eligible first-home buyers purchase their first home sooner.
Similarly, the RFHBG helps eligible regional first-home buyers buy a home in a regional area. Applicants for the RFHBG must have lived in the regional area or adjacent regional area they are purchasing in for the preceding 12-month period to the date they execute the home loan agreement. Download our RFHBG guide here.
Normally, first-home buyers are required to pay Lenders Mortgage Insurance (LMI) if they have a deposit of less than 20% of the total property value.
However, with the FHBG and RFHBG, eligible buyers can purchase their first home with a deposit as little as 5%, without paying LMI! The remaining 15% is guaranteed by the NHFIC.
Lender’s Mortgage Insurance is a type of fee that banks and other lenders often charge on loans where the borrowing exceeds 80% of the property value. It’s usually a one-off payment, and it only protects the lender, not you, if you default on your loan. Not having to pay this can save buyers serious money!
For more detailed information on the FHBG, download our guide here.
Otherwise, read our eligibility guide below.
The Family Home Guarantee (FHG)
The Family Home Guarantee is set up by the Australian Government to help eligible single parents and guardians (such as an uncle or aunt), with at least one dependent child, to buy a home for their family.
With the FHG, eligible single parents and guardians can build a new home or buy an existing home. They can do this with a deposit as low as 2% of the property value! It doesn’t matter if they have owned a property previously or if they are a first home buyer, but they may not currently own a property.
For more detailed information on the FHG, download our guide here.
Otherwise, read our eligibility guide below.
Property types available for FHBG, RFHBG and FHG
The property must be a ‘residential property’ for it to be eligible. These include:
- Existing houses, apartments or townhouses.
- House and land packages.
- Land as well as a separate contract to build a home.
- An off-the-plan apartment or townhouse.
Eligibility for FHBG, RFHBG and FHG
| First Home Guarantee
[Download Guide] |
Regional First Home Buyer GuaranteeÂ
[Download Guide] |
Family Home Guarantee
[Download Guide] |
|---|---|---|
| Must be an Australian citizen, 18 years old at least. Permanent residents are also eligible. | Must be an Australian citizen, 18 years old at least. Permanent residents are also eligible. | Must be an Australian citizen 18 years old at least. Permanent residents are also eligible. Must be a single parent or guardian (like an uncle or aunt) and be caring for at least one dependent child. |
| If single, must have a maximum taxable income of $125,000 per annum for the previous financial year, as shown on the Notice of Assessment issued by the Australian Taxation Office. If a couple, must have a combined taxable income of up to $200,000 for the previous financial year, as shown on the Notice of Assessment issued by the Australian Taxation Office. |
If single, must have a maximum taxable income of $125,000 per annum for the previous financial year, as shown on the Notice of Assessment issued by the Australian Taxation Office. If a couple, must have a combined taxable income of up to $200,000 for the previous financial year, as shown on the Notice of Assessment issued by the Australian Taxation Office. |
Must have a maximum taxable income of up to $125,000 per annum for the previous financial year, as shown on the Notice of Assessment issued by the Australian Taxation Office. Payments for child support are not included as part of the income. |
| Couples only qualify if they are married or in a de-facto relationship with each other. | Couples only qualify if they are married or in a de-facto relationship with each other. | Must be the only name listed on the loan and certified title. |
| Other persons planning to buy together such as siblings, parent and child, friends, etc. may also qualify. | Other persons planning to buy together such as siblings, parent and child, friends, etc. may also qualify. | Must be the natural or adoptive parent, or a guardian (like an aunt or uncle) of a dependent child or children. Alternatively, they must show that they are the natural or adoptive parent or guardian of a child between the age of 16 and 22, who receives a disability support pension and lives with them. |
| Applicants who are single or couples must provide a deposit of at least 5% of the value of an eligible property. People with 20% or more funds available to them will not be eligible. | Applicants (or at least one applicant if applying as a couple) must have lived in the regional area or adjacent to the regional area they are purchasing in for the preceding 12-month period to the date they execute the home loan agreement (Some exceptions may apply). They must provide at least 5% of the value of an eligible property. | Applicants must provide a deposit of at least 2% of the value of an eligible property. Single parents with 20% or more funds available will not be eligible. |
| Loans need to have scheduled repayments of the principal and interest of the loan for the full period of the agreement. Some exceptions apply. | Loans need to have scheduled repayments of the principal and interest of the loan for the full period of the agreement. Some exceptions apply. | Loans must have scheduled repayments of the principal and interest of the loan for the full period of the agreement. The loan should not be any longer than 30 years. |
| Must plan to be the owner and occupiers of the property. An exception may be granted if they are an active member of the Australian Defence Force. | Must plan to be the owner and occupiers of the property. An exception may be granted if they are an active member of the Australian Defence Force. | Must plan to be the owner and occupiers of the property. An exception may be granted if they are an active member of the Australian Defence Force. |
| They can either be first home buyers or have owned a property previously, however they must not currently own a property, owned a property in the past 10 years. | They can either be first home buyers or have owned a property previously, however they must not currently own a property, owned a property in the past 10 years. | They can either be first home buyers or have owned a property previously, however they must not currently own a property, own the lease of a property, own land, own the lease of a piece of land or own a company title interest in land in Australia. |
Source: The National Housing Finance and Investment Corporation (NHFIC)
Property Price Thresholds
| State | Capital city &Â Â Â Â regional centres* | 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 |
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| Territory | All areas |
|---|---|
| ACT | $750,000 |
| NT | $600,000 |
| Jervis Bay Territory & Norfolk Island | $550,000 |
| Christmas Island & Cocos (Keeling) Islands | $400,000 |
* The capital city price thresholds apply to regional centres with a population over 250,000 (Newcastle & Lake Macquarie, Illawarra (Wollongong), Geelong, Gold Coast and Sunshine Coast), recognising that dwellings in regional centres can be significantly more expensive than other regional areas.
Source: The National Housing Finance and Investment Corporation (NHFIC)
How to apply
Think you might qualify for a FHBG or a FHG? Talk to your friendly Nectar mortgage broker for more information. Nectar brokers have access many of the participating lenders to find you the most appropriate loan* and help you with your application.
Important notes
All participating lenders will need your land to be titled before the NHFIC issue a guarantee. The land will need to be titled prior to the conclusion of the 90-day pre-approval period.
*All loans are subject to suitability and lender conditions.