For a first-time homebuyer in Australia, navigating the path to homeownership can feel overwhelming. Fortunately, there are several government-backed resources designed to make the process easier. One of the most impactful initiatives is the Home Guarantee Scheme, which offers financial support and reduced deposit requirements to eligible buyers.
What Is the Home Guarantee Scheme?
Administered by the , the Home Guarantee Scheme helps first-time homebuyers in Australia by guaranteeing a portion of their home loan. This allows buyers to secure a mortgage with a deposit as low as 2% to 5%, without paying lenders mortgage insurance.
The scheme includes three key components:
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First Home Buyer Guarantee (FHBG)
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Regional First Home Buyer Guarantee (RFHBG)
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Family Home Guarantee (FHG)
💡 Note: This is not a cash payment or a deposit—it’s a government-backed guarantee through a Participating Lender.
Participating Lenders & Comparison Table
To streamline the process, NHFIC has partnered with across Australia. These lenders offer the Home Guarantee Scheme to eligible applicants. You can view the to understand the differences between the three guarantees.
Breakdown of the Three Guarantees
First Home Buyer Guarantee
Designed for first-time homebuyers in Australia, this guarantee helps eligible individuals purchase property sooner with just a 5% deposit. Each financial year, 35,000 places are available.
Regional First Home Buyer Guarantee
The RFHBG supports buyers purchasing property in designated regional areas. From October 1, 2022, to June 30, 2025, 10,000 places are available annually.
Family Home Guarantee
This guarantee assists single parents with at least one dependent child. It allows them to buy a home with a deposit as low as 2%. There are 5,000 places available each financial year until June 30, 2025.
Things to Know for First-Time Homebuyers in Australia
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A 20% deposit is ideal to avoid lenders mortgage insurance.
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Depending on your location and eligibility, you may qualify for grants requiring only a 2% deposit.
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Source: NHFIC
The Gist
First Home Buyer Guarantee
This assists eligible first-time home buyers in purchasing their property sooner with a deposit as low as 5%. Each financial year, there are 35,000 places available.
Regional First Home Buyer Guarantee
The RFHBG helps eligible regional first home buyers purchase a property in a specific regional area. From October 1, 2022, to June 30, 2025, 10,000 places are available every financial year.
Family Home Guarantee
The FHG supports eligible parents with at least one dependent child in purchasing a property with a deposit as low as 2%. Each financial year until June 30, 2025, there are 5,000 places available.
Things to note
The deposit required for a first-time homebuyer in Australia varies depending on the type of mortgage you qualify for.
A 20% deposit is ideal as it allows you to avoid paying lenders mortgage insurance on most standard home loans. However, depending on your location, you may qualify for first-time homebuyer grants and assistance that may require as little as a 2% down payment.
