In the journey toward homeownership, financial hurdles like saving for a significant deposit can slow down your progress. The Australian Government’s Home Guarantee Scheme (HGS) offers a transformative solution. By reducing deposit requirements and eliminating Lenders Mortgage Insurance (LMI), the HGS helps Australians buy homes sooner. Below, we’ll explore everything you need to know about this initiative, from eligibility to application.

Frequently Asked Questions

Who qualifies for the Regional First Home Buyer Guarantee?
This scheme supports those living in regional areas, enabling purchases with just a 5% deposit.

Can single parents benefit from the scheme?
Yes, the Family Home Guarantee allows single parents or guardians with dependents to buy homes with a deposit as low as 2%.

Are there price caps for properties?
Yes, property price caps depend on location. Use the Property Price Cap Tool for specific limits in your area.

What is the Home Guarantee Scheme?

The Home Guarantee Scheme (HGS) is an Australian Government initiative that aims to make homeownership accessible by reducing deposit requirements and removing the need for Lenders Mortgage Insurance (LMI). With three tailored guarantees, the HGS caters to diverse needs:

• First Home Guarantee (FHBG): For first-time buyers or those who haven’t owned property in 10 years, requiring just a 5% deposit.
• Regional First Home Buyer Guarantee (RFHBG): For regional residents buying homes in their area, also with a 5% deposit.
• Family Home Guarantee (FHG): For single parents or legal guardians with dependents, enabling purchases with only a 2% deposit.

The scheme works in partnership with authorised lenders, who facilitate loans with the government-backed guarantee.

Advantages of the Home Guarantee Scheme

• Reduced Deposits: Buy a home with as little as 2% or 5% deposit.
• No Lenders Mortgage Insurance (LMI): Save on costly LMI fees, thanks to the government guarantee.
• Flexible Options: Caters to first-home buyers, regional residents, and single parents.
• Encourages Regional Development: Promotes homeownership in less populated areas.

Requirements

• Residency and Age: Must be an Australian citizen or permanent resident, aged 18 or older.
• Income Limits: Individual applicants must earn less than $125,000 annually, or $200,000 for joint applicants.
• Deposit Range: Must have a deposit of 2–20% of the property’s value.
• Principal Residence: Purchased property must be used as the primary residence.

Specific Criteria for Each Guarantee

• FHBG and RFHBG: Applicants must not have owned property in the last 10 years.
• FHG: Single parents or guardians may qualify, even if they’ve previously owned property, provided they do not currently own any.
• Regional Guarantee: Applicants must have lived in a regional area for 12 months before applying, unless exempt due to work relocation.

How to Access the Home Guarantee Scheme

Step 1: Check Your Eligibility

• Use the Eligibility Tool to determine which guarantee suits your circumstances.
• Ensure you meet residency, income, and property criteria.

Step 2: Find a Participating Lender

• Visit the Participating Lenders page to identify lenders authorised under the scheme.
• Consult with a lender or mortgage broker for personalised advice.

Step 3: Gather Required Documents

Prepare the following:

• Proof of identity (passport, Medicare card)
• ATO Notice of Assessment
• Evidence of deposit savings
• Proof of income and financial documents

Step 4: Submit Your Application

• Contact your chosen lender to initiate the application process.
• Provide all required documents to verify your eligibility.
• Your lender will reserve your place in the scheme if approved.

Step 5: Complete the Purchase

• Once approved, you have 90 days to finalise your home purchase.
• Work with your lender to complete the settlement process.

Guarantee Comparison Table

The Home Guarantee Scheme opens doors for Australians to achieve homeownership sooner, with tailored options for first-home buyers, regional residents, and single parents. By reducing financial barriers, the HGS enables individuals and families to turn their homeownership dreams into reality.