Own Your First
Home Sooner.
The Australian Government's First Home Guarantee lets eligible buyers purchase with as little as a 5% deposit — with zero Lenders Mortgage Insurance. No income caps. No waitlists.
How the Guarantee Works
The Government acts as your mortgage insurer — not a co-owner. You keep 100% of your property.
You contribute a minimum 5% from genuine savings
Government guarantees this portion to the lender
Standard loan — you repay 100% of the mortgage
Why does this matter?
Normally, if your deposit is under 20%, lenders charge LMI — a fee that protects them, not you. This can add $10,000–$60,000 to your upfront costs. The FHBG eliminates this entirely.
Eligibility Criteria
Significant changes from October 1, 2025 have opened this scheme to more Australians than ever before.
Who Can Apply
- ✓Australian citizens or permanent residents
- ✓At least 18 years of age
- ✓First home buyers OR haven't owned property in last 10 years
- ✓Individuals or two joint applicants (friends, siblings, couples)
- ✓No income limits — removed Oct 2025
Property Requirements
- ✓Minimum 5% genuine deposit
- ✓Must be your primary place of residence
- ✓Property below location-specific price caps
- ✓Established homes, townhouses, apartments
- ✓House & land packages, off-the-plan, vacant land + build
⚠ Not Eligible Under FHBG
Your LMI Savings
Avoiding Lenders Mortgage Insurance is the scheme's most immediate benefit. Here's what you could save.
| Property Price | Your 5% Deposit | LMI Without Scheme | LMI With FHBG | Your Saving |
|---|---|---|---|---|
| $500,000 | $25,000 | ~$10,000 | $0 | Save ~$10,000 |
| $700,000 | $35,000 | ~$20,000–$30,000 | $0 | Save ~$25,000 |
| $1,000,000 | $50,000 | ~$30,000–$40,000 | $0 | Save ~$35,000 |
| $1,500,000 | $75,000 | ~$45,000–$60,000 | $0 | Save ~$52,000 |
Competitive Rates
Receive interest rates equivalent to 80% LVR loans — even on a 5% deposit. Normally, a 95% LVR loan commands a higher rate.
Faster Market Entry
A 5% deposit instead of 20% means you could buy years sooner. In a rising market, that headstart is invaluable.
Greater Borrowing Power
Because LMI is waived (not added to the loan balance), your overall debt stays lower and your monthly repayments remain manageable.
Property Price Caps
Effective October 2025, caps have been raised to better reflect today's market. Your property must fall below these thresholds.
| State / Territory | Metro / Capital City | Regional |
|---|---|---|
| New South Wales | $1,500,000 | $1,500,000 |
| Victoria | $950,000 | $950,000 |
| Queensland | $900,000 | $900,000 |
| Western Australia | $850,000 | $850,000 |
| South Australia | $800,000 | $800,000 |
| Tasmania | $750,000 | $750,000 |
| ACT | $1,000,000 | — |
| Northern Territory | $700,000 | $700,000 |
* The Regional First Home Buyer Guarantee has been consolidated into the FHBG from October 2025. Always verify current caps at housingaustralia.gov.au.
How to Apply
Applications are made through approved lenders — not directly with the government. Here's the full journey.
Verify Eligibility
Use Housing Australia's online Eligibility Tool. Check residency, age, ownership history, and property price caps for your target location.
Gather Documents
Prepare proof of identity, Medicare card, ATO Notice of Assessment, payslips, savings evidence, and a completed Home Buyer Declaration.
Apply via Participating Lender
Submit through one of 30+ approved lenders or an authorised mortgage broker. They assess your credit history and serviceability.
Reserve Your Place
Once approved, your place is reserved for 14 days for formal submission, then you get 90 days to find an eligible property.
Sign & Settle
After signing your contract, you have 30 days to finalise loan paperwork. Move in after settlement to maintain the guarantee.
Participating Lenders
30+ lenders are approved to offer the FHBG. Choose one that suits your needs — or use a mortgage broker to compare.
Major Banks
Regional & Customer-Owned Banks
Tip: A mortgage broker can access multiple participating lenders simultaneously, helping you find the best interest rate and most flexible approval policy for your situation — at no cost to you.
Frequently Asked Questions
Everything you need to know before you apply.