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[MoreMore Insights] First Home Guarantee

What is First Home Guarantee?

The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible first home buyers purchase a home sooner. It is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government. Under the FHBG, part of an eligible first home buyer’s home loan from a Participating Lender is guaranteed by NHFIC. This enables an eligible home buyer to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance.

From 1 July 2022 – 30 June 2023, 35,000 FHBG places are available to eligible first home buyers.


To apply for the FHBG, home buyers must be:

• applying as an individual or couple (married / de facto)

• an Australian citizen(s) at the time they enter the loan. Permanent residents will also be eligible from July 1, 2023

• at least 18 years of age

• earning up to $125,000 for individuals or $200,000 for couples, as shown on the Notice of Assessment (issued by the Australian Taxation Office)

• intending to be owner-occupiers of the purchased property

• first home buyers who have not previously owned, or had an interest in, a property in Australia. However, from July 1 2023, The guarantees will also be expanded to non‑first home buyers who haven’t owned a property in Australia in the last ten years.

Applicants can apply as a single person or a couple. It is worth emphasizing that from 1 July this year, friends, siblings, and other family members will be eligible for joint applications under the First Home Guarantee and the Regional First Home Buyer Guarantee. These guarantees had previously been restricted to people that were married or in a de‑facto relationship, in addition to single applicants.

Property Types and Price Caps

Under the FHBG, home buyers can purchase a residential property, including:

• an existing house, townhouse or apartment;

• a house and land package;

• land and a separate contract to build a home;

• an off-the-plan apartment or townhouse.

However, the property you purchase must fall under the relevant price cap threshold for your state/territory. Taking NSW as an example, the highest value in the Capital city/regional centers is AUD 900,000, and the highest value rest of state is AUD 750,000.

How to apply

Applications can only be made with a Participating Lender or mortgage broker. NHFIC does not accept applications for the HGS or provide personal financial advice.

National Housing Finance and Investment Corporation (NHFIC) has authorised 32 participating lenders to offer the Home Guarantee Scheme, including CBA & NAB. And eligible first home buyers may also apply for other government grant, like stamp duty exemption. Contact your professional mortgage broker to find out more.

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