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[MoreMore Insights] Guide of Government’s Home Guarantee Schemes

Saving up for a home deposit is not easy, government's Home Guarantee schemes could help.

What is the First Home Guarantee?

The First Home Guarantee (FHBG) is a government scheme designed to help first home buyers being able to purchase a home with a minimum deposit of just 5%. The government guarantees up to the remaining 15% allowing lenders to approve LMI-free home loans for low deposit borrowers.

Eligibility for the First Home Guarantee Scheme

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 01 July 2023, non-first home buyers who have not owned a property in the past 10 years will also be eligible as part of the Federal Budget 23-24.

Applicants can apply as a single person or a couple. It is worth emphasizing that from 01 July 2023, friends and family members will be able to jointly apply for this scheme. From July 2023 to June 2024, there are 35,000 FHBG places available.

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.

What is the Regional Home Guarantee?

The Regional Home Guarantee is very similar to the First Home Guarantee in that it helps rural Aussies with low deposits buy property sooner. You can have a deposit as low as 5%, and the government will guarantee up to 15% of your deposit.

The Regional Home Guarantee is set to provide 10,000 places to regional home buyers. With interest in regional housing markets on the rise, this could help more home buyers consider a move away from the cities.

What is the Family Home Guarantee?

The Family Home Guarantee (FHG) is a government program helping eligible single parents with dependent children buy a home with a low deposit. Under this scheme, eligible applicants can buy a home with a deposit as low as 2%, with the government guaranteeing up to 18%. From July 2023 to June 2024, there are 5,000 places avaiable.

Eligibility for Family Home Guarantee

The general eligibility criteria for the Family Home Guarantee is as follows:

•Applicants must be single – they cannot be married or have a de-facto partner. Those who are separated, but not divorced are not considered to be single;

•Applicants must be Australian citizen or permanent residents;

•From July 1 2023, single legal guardians of children will also be eligible;

•Applicants must have at least 1 dependent child;

•While applicants do not have to be first home buyers, they must not currently own property;

•Applicants must have a taxable income of up to $125,000;

•Residential properties are eligible under the scheme, including new and existing houses, townhouses and apartments, off-the-plan homes, house and land packages, as well as land and build contracts.

What is the First Home Owner (New Homes) Grant?

In NSW, a $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home.Your first new home can be a house, townhouse, apartment, unit or similar that is newly built, purchased off the plan or substantially renovated.

If you purchase a newly built house, townhouse, apartment, unit or similar the purchase price must not exceed $600,000. If you purchase vacant land and sign a building contract with a builder then we add the value of the vacant land plus the value of the comprehensive home building contract plus the cost of any building variations done together. The total combined cost must not exceed $750,000.


•Each applicant must be at least 18 years old.

•You must be a first home buyer as a person, not as a company or trust;

•At least one applicant must be a permanent resident or Australian citizen;

•You or your spouse, partner or co-purchaser must not have previously owned a home;

•You must occupy your first home as your principal place of residence within 12 months of the construction or purchase of your home and the minimum period of occupancy is six continuous months.

What is First Home Buyer Assistance Scheme?

In NSW , if you’re a first home buyer, you may be entitled to a concessional rate of stamp duty (or transfer duty) or even an exemption from paying it altogether under the First Home Buyers Assistance scheme (FHBAS). Unlike the First Home Owner Grant, the FHBAS applies to:

•Buying an existing home or a new home:

Buy a home valued at less than $800,000, apply for a full exemption and pay no transfer duty.

Buy a home valued between $800,000 and $1,000,000, and apply for a concessional transfer duty rate. The amount will be based on the value of your home.

•Vacant land on which you intend to build a home:

You won’t pay transfer duty if your land is valued at less than $350,000.

For land valued between $350,000 and $450,000, you’ll receive a concessional rate.

Who’s eligible for the FHBAS?

•you must be an individual, not a company or trust;

•you must be over 18;

•you, and your spouse or partner, must never have owned or co-owned residential property in Australia;

•you, and your spouse or partner, must never have received an exemption or concession under this scheme;

•at least one of the first home buyers must be an Australian citizen or permanent resident.

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