First Home Guarantee
(Formally the First Home Loan Deposit Scheme)
Saving a deposit for your first home can be challenging.
This scheme allows you to get into the housing market without having to pay expensive Lenders Mortgage Insurance (LMI) or having to save up 20% deposit plus costs.
You can get into the market with only a 5% deposit (plus any costs) without paying LMI.
The scheme allows first home buyers who can’t reach the 20% deposit to take out a loan as long as they have saved at least 5% of the property they are buying.
The government will underwrite the loan so that borrowers do not have to pay LMI.
The First Home Guarantee is an initiative from the Australian Government designed to support eligible first home buyers purchase a home sooner.
The National Housing Finance and Investment Corporation (NHFIC) provides a guarantee for eligible first home buyers on low and middle incomes so that they can purchase a home with a deposit of as little as five percent.
The Australian Government has made 35,000 First Home Guarantee places available for the current financial year through a panel of participating lenders.
Under the First Home Guarantee, you're required to contribute a minimum of five percent of the property’s value towards the deposit. NHFIC then provides a guarantee to the lender covering up to 15% of the property’s value.
The Family Home Guarantee is an Australian Government initiative designed to support single parents with at least one dependent child in purchasing a family home.
The NHFIC provides a guarantee for eligible single parents on low and middle incomes so that they can purchase a home to live in with a deposit of as little as two percent, regardless of whether the single parent is a first home buyer or a previous home owner.
The Australian Government has made 5,000 Family Home Guarantee places available for the current financial year through a panel of participating lenders.
Under the Family Home Guarantee, you're required to contribute a minimum of two percent of the property’s value towards the deposit. The NHFIC then provides a guarantee to the lender covering up to 18% of the property’s value.
For the Home Guarantee Scheme, you can check your eligibility on the NHFIC website. The following conditions will generally apply:
Did you know you can apply and use more than one of the First Home Buyer schemes combined?