What properties qualify for the Family Home Guarantee?

The Family Home Guarantee helps eligible buyers enter the property market with a lower deposit, but not every property will qualify under the scheme. From property price caps to eligible home types and construction requirements, there are several rules buyers need to understand before applying for finance.

We explain what properties may qualify under the Family Home Guarantee, including established homes, new builds, and house and land packages. We’ll also be exploring how location, contracts, and lender requirements can affect eligibility when buying or building a home in Victoria and across Australia.

What types of properties are allowed under the scheme

The Family Home Guarantee supports a range of eligible property types, helping buyers explore different pathways into home ownership depending on their budget, lifestyle and location preferences. Property eligibility is determined by Housing Australia guidelines, lender requirements and relevant property price caps under the scheme.

Eligible property types may include:

• Established houses suitable for owner-occupier living
• Newly built homes purchased through eligible builders
• Townhouses that meet scheme property requirements
• Apartments and units within the applicable property price caps
• House and land packages linked to eligible construction contracts
• Off-the-plan properties that satisfy lender and scheme conditions
• Newly constructed homes that have not previously been occupied
• Vacant land paired with an eligible build contract through participating lenders

All properties purchased under the Family Home Guarantee must be residential properties intended for owner-occupier use. Buyers are generally unable to purchase investment properties, commercial buildings or holiday homes through the scheme.

Property eligibility may also vary depending on location, contract structure and total property value. Reviewing the current eligibility criteria with participating lenders can help buyers better understand which property types may qualify under the scheme.

Can you buy a house and land package with the Family Home Guarantee?

House and land packages may qualify under the Family Home Guarantee, provided the purchase structure meets the eligibility requirements set by Housing Australia and participating lenders. For many buyers, this can create an opportunity to build a new home while accessing the benefits of a lower deposit pathway.

Eligibility for house and land packages often depends on how the contracts are arranged. In most cases, buyers will need separate land and construction contracts that clearly outline the total project costs. The combined value of the land purchase and build contract must remain within the relevant property price caps for the chosen location.

Construction contracts also need to meet lender and scheme requirements before approval can proceed. Buyers exploring new builds should carefully review timelines, contract conditions and estimated building costs to ensure the project remains eligible throughout the approval process.

House and land packages can offer more flexibility in layout, design, and modern inclusions than established homes. However, buyers should also factor in additional costs linked to site works, upgrades and construction timing when planning their budget under the Family Home Guarantee.

Speaking with participating lenders and experienced builders early in the process may help buyers better understand which house and land package options align with current scheme eligibility requirements.

Do new builds qualify under the Family Home Guarantee?

New builds can qualify under the Family Home Guarantee if the property and purchase structure meet the eligibility requirements set by Housing Australia and participating lenders. This gives eligible buyers the opportunity to build or purchase a newly constructed home while accessing a lower deposit pathway under the scheme.

Eligible new-build options may include newly constructed houses, off-the-plan properties and some house and land packages. In most cases, the property must be intended as an owner-occupier residence and remain within the applicable property price caps for the chosen location.

Buyers building a new home may also need to apply for a construction loan through a participating lender. Construction loans can involve additional approval steps, staged payments and contract requirements compared to purchasing an established home. Reviewing timelines, contract details and total project costs early may help buyers avoid delays during the approval process.

Off-the-plan properties may also qualify under the Family Home Guarantee, provided the contract structure and final property value meet current scheme eligibility requirements. Buyers considering these options should confirm eligibility with their lender before signing contracts.

For many buyers, building a new home can provide greater flexibility around layout, energy efficiency and modern features. Taking time to understand how new-build eligibility works under the scheme may help buyers feel more confident when planning their pathway to home ownership.

What property price limits apply under the scheme

The Family Home Guarantee includes property price caps that determine which homes buyers can purchase under the scheme. These limits vary based on location and are designed to reflect different conditions across the Victorian housing market and broader Australian property market.

Metropolitan property caps

Price limits apply to homes purchased within Melbourne and surrounding metropolitan areas.

Includes:

• Existing homes
• New builds
• Apartments and townhouses
• Eligible house and land packages

Regional property caps

Separate price caps apply to eligible homes located in regional Victoria.

Includes:

• Regional established homes
• New home construction projects
• Eligible off-the-plan properties
• House and land packages

For buyers building a home, the total land and construction costs must stay within the relevant property price cap. Reviewing updated scheme limits before signing contracts may help buyers avoid eligibility issues later in the approval process.

How property location affects eligibility

Under the Family Home Guarantee, property location influences both eligibility requirements and the types of homes buyers may purchase within the scheme's limits.

Metropolitan areas across Melbourne generally have higher property values, which can reduce the number of homes available within the approved property price caps. In comparison, regional Victoria may offer buyers greater flexibility and access to a wider range of eligible properties.

Location can also shape the style of homes available under the scheme, from apartments and townhouses in metropolitan areas to larger detached homes and house and land packages in regional property zones. Reviewing both metropolitan and regional options may help buyers identify more suitable pathways into home ownership under the Family Home Guarantee.

What property conditions or requirements must be met

Properties purchased under the Family Home Guarantee must meet specific eligibility requirements set by Housing Australia and participating lenders. These conditions help ensure that the property is suitable for owner-occupier living and align with the scheme's rules.

Property requirements may include:

• The property must be a residential property located in Australia
• Buyers must intend to live in the property as their principal place of residence
• Investment properties and holiday homes are generally not eligible
• The purchase price must remain within the applicable property price caps
• The property must meet minimum livability and safety standards
• Eligible homes can include established homes, new builds and some off-the-plan properties
• Construction contracts for new builds must meet lender and scheme requirements
• The home loan must usually be an owner-occupier loan with principal and interest repayments
• Buyers must apply through a participating lender approved under the scheme
• The property purchase must align with the current Family Home Guarantee eligibility criteria

For buyers exploring new homes or house and land packages, reviewing all contract terms and total project costs carefully may help avoid issues during the approval process. Confirming property eligibility early can also make the home-buying journey feel smoother and more manageable.

What properties are not eligible under the scheme

Not every property type qualifies under the Family Home Guarantee. Housing Australia and participating lenders apply eligibility rules that limit certain property purchases to ensure the scheme supports owner-occupier homeownership rather than investment or luxury purchases.

Ineligible property types may include:

• Investment properties
• Holiday homes
• Commercial buildings
• Luxury homes above the relevant property cap
• Vacant land without an eligible build contract
• Properties unsuitable for owner-occupier living
• Certain non-standard or specialised property types
• Purchases outside current Housing Australia eligibility requirements

Checking property eligibility before applying for finance can help buyers avoid unnecessary complications and narrow their search more effectively.

How contract structure affects eligibility when building

Building a home under the Family Home Guarantee can involve multiple contracts, and the way these agreements are structured may affect whether the project qualifies under the scheme. Participating lenders and Housing Australia will generally review both the land purchase and construction arrangements before approving finance.

Separate land and build contracts

Many buyers using the Family Home Guarantee purchase land first before entering into a separate build contract with a builder. Both contracts are typically assessed together to confirm the total project value remains within the relevant property price caps.

Combined project costs exceeding the price cap

The total cost of the land and construction contract must stay within the applicable scheme limits for the location. Site costs, upgrades, and additional inclusions may increase the final value and affect eligibility if not carefully planned.

Construction contracts not meeting lender requirements

Participating lenders may impose specific conditions on construction contracts before approving financing. Missing information, unclear timelines or contract variations can sometimes delay approvals during the application process.

Delays between land purchase and construction

Long gaps between securing land and commencing construction may create complications with lender approvals or scheme eligibility requirements. Buyers should confirm timelines carefully before proceeding with contracts.

Changes to contracts during the build

Contract changes during construction, including pricing adjustments or upgrades, may affect borrowing capacity and eligibility under the Family Home Guarantee if the total project cost increases beyond approved limits.

Common mistakes when choosing a property under the scheme

Choosing the wrong property under the Family Home Guarantee can create delays, approval issues or unexpected financial pressure during the home-buying process. Reviewing eligibility requirements carefully before signing contracts may help buyers avoid common property selection mistakes.

Choosing a property above the price cap

One of the most common eligibility errors buyers make is selecting a property that exceeds the approved price cap for the location. Property price limits vary between metropolitan and regional areas, so buyers should confirm current caps before beginning their search.

Assuming all property types automatically qualify

Not every residential property is eligible under the Family Home Guarantee. Some buyers mistakenly assume investment properties, holiday homes or certain non-standard property types can qualify under the scheme.

Overlooking total build and land costs

For buyers building a new home, the combined value of the land purchase and construction contract must remain within the relevant scheme limits. Additional site costs, upgrades and variations can sometimes push the final value above the approved cap.

Signing contracts before confirming eligibility

Committing to a property before speaking with a participating lender may create complications if the home does not meet the scheme's requirements or the borrowing assessments. Reviewing eligibility early may help reduce unnecessary pressure during the approval process.

Focusing only on short-term affordability

Some buyers choose properties based solely on the lower deposit requirement, without considering long-term repayments, household costs, or future financial flexibility. A property that feels affordable upfront may create additional pressure over time if ongoing costs are not carefully planned.

How to choose the right property within scheme limits

Choosing the right property under the Family Home Guarantee involves more than finding a home within budget. Buyers should also consider location, long-term affordability and current eligibility requirements before committing to a purchase.

Key factors buyers should evaluate include:

• Confirming the property falls within the applicable property price caps
• Comparing metropolitan and regional locations based on budget and lifestyle needs
• Reviewing ongoing home loan repayments alongside everyday living expenses
• Checking whether the property type meets the current scheme eligibility criteria
• Considering future household needs when choosing home size and layout
• Reviewing total project costs for new builds and house and land packages
• Speaking with participating lenders before signing contracts
• Exploring suburbs with stronger affordability and growth opportunities
• Factoring in additional purchase costs such as legal fees and stamp duty
• Preparing a realistic property search budget before applying for finance

A well-planned property search can help buyers avoid eligibility issues and feel more confident throughout the home-buying journey. Taking time to compare options carefully may also help buyers find a home that better supports their long-term financial goals and lifestyle plans.

How Carlisle Homes helps you find eligible properties and build your home

With a broad range of modern home designs and house and land packages Melbourne buyers can explore, Carlisle Homes helps make it easier to find property options that align with Family Home Guarantee requirements and individual lifestyle goals.

Our team supports buyers through every stage of the journey, from comparing eligible new home options to selecting personalised designs that balance functionality, style and long-term value within scheme limits.