How much deposit do I need for my first home?
Good news for first-home buyers! Three government-backed schemes are currently available under the Home Guarantee Scheme (HGS) that make it easier to purchase a home with a smaller deposit. Here’s a quick guide to what’s available:
1. First Home Guarantee (formerly First Home Loan Deposit Scheme – FHLDS)
Eligible first-home buyers can access the First Home Guarantee with just a 5% deposit. This helps you avoid lenders’ mortgage insurance (LMI), fast-tracking your homeownership journey.
2. Regional First Home Buyer Guarantee
Like the First Home Guarantee, the Regional First Home Guarantee allows you to buy a home with just a 5% deposit, with the government guaranteeing the remaining 15%. The key difference is that this scheme is available only in regional areas. You don’t need to be a first-home buyer to qualify, but you can’t have owned property in the past five years.
3. Family Home Guarantee
Single parents with dependents can benefit from the Family Home Guarantee, which requires as little as a 2% deposit – a significant help for those navigating the property market on a single income.
Example deposits with government guarantees
If you qualify for the First Home or Regional First Home Buyer guarantees, your deposit requirements are significantly reduced:
- For a $400,000 home, a 5% deposit would be $20,000.
- For an $800,000 home, a 5% deposit would be $40,000.
With the Family Home Guarantee:
- For a $400,000 home, a 2% deposit would be $8,000.
- For a $550,000 home, a 2% deposit would be $11,000.
These schemes can reduce the time needed to save for a deposit, helping you achieve your property goals sooner. We’ve created some tables to help you compare these schemes and see which one you may qualify for.
The maximum property price you can purchase under these schemes varies by region. Check out the table below to see the relevant limits for your area.
| First Home Guarantee (FHG) | Regional FHB Guarantee | Family Home Guarantee | |
| Minimum deposit | 5% | 5% | 2% |
| Property type | New or existing homes | Regional homes | New or existing homes |
| Number of places | 35,000 per year | 10,000 per year | 5,000 per year |
| Borrower eligibility | First-home buyers who are Australian citizens, and over 18; singles or couples. | First home buyers who are Australian citizens, over 18, living in or adjacent to the regional area for 12 months. | Single parents with at least one dependent child; Australian citizens, over 18. |
| Max borrower income | $125,000 (singles); $200,000 (couples)* | $125,000 (singles); $200,000 (couples)* | $125,000 (no additional cap for dependents) |
| Purchasing history | Must be first-time buyers. | Must be first-time buyers. | First or previous homeownership; cannot currently own property. |
* Based on previous financial year’s tax return.
For more information on price caps click here
Think you qualify? Let’s get your application sorted!
These schemes are available from 1 July 2024 until 30 June 2025. A Nectar broker can streamline the process by guiding you through applications, organising your documentation, and sourcing the right finance from a panel of lenders to help you buy your home.
Other government support schemes for first-home buyers:
- First Home Super Saver Scheme – Make voluntary contributions to your super, which you can withdraw to use as a home deposit.
- Regional First Home Buyer Support Scheme – For those intending to buy property in regional Australia, where the government helps guarantee part of your deposit.
- Help to Buy Scheme – The government funds some of the upfront costs of a home in exchange for equity in the property.
State-specific first-home buyer benefits:
- Stamp Duty Discounts and Exemptions: Vary by state and can save thousands. Use our stamp duty calculator to see potential savings.
- First Home Owner Grants: Available in many states, with grants ranging from $10,000 to $20,000, which can be used as part of your deposit.
For more first-home buyer resources and to see what’s available in your state, head over to our first home buyer page.
