Can permanent residents use the Home Guarantee Scheme?
For many permanent residents, buying or building a home is a major milestone that marks stability, security and a long-term future in Australia. The Australian Government’s Home Guarantee Scheme has helped thousands of first home buyers enter the property market with a lower deposit, but many permanent residents are unsure whether they qualify.
Knowing where you stand can help you plan with confidence and move closer to owning a home of your own.
Are permanent residents eligible for the Home Guarantee Scheme?
Yes, in many cases, permanent residents can be eligible for the Home Guarantee Scheme. While Australian citizens are usually given priority, the Australian Government does allow eligible permanent residents to participate in the scheme, provided all eligibility criteria are met.
If you are a permanent resident building your first home, the key things lenders and the government look at are your visa status, income, and whether you have previously owned property in Australia. You will need to hold a valid permanent residency visa at the time you apply and continue to meet the scheme’s conditions through the home loan process.
Like all first home buyers using the Home Guarantee Scheme, permanent residents must be purchasing a home to live in, not an investment property, and the purchase price must fall within the property price caps set for your location.
Meeting these requirements can make it possible to buy a home sooner with a lower deposit and without paying lenders mortgage insurance.
What documentation do permanent residents need to provide?
When applying for the Home Guarantee Scheme as a permanent resident, having the right documents ready can make the process smoother and help lenders assess your eligibility more quickly. While exact requirements can vary slightly between participating lenders, most permanent resident applicants will be asked to provide the following.
The documents that are commonly required are:
- Proof of permanent residency visa: Evidence that you hold a valid permanent residency visa at the time you apply. This confirms your eligibility to access the scheme as a permanent resident.
- Personal identification: Standard identification documents, such as your passport and an additional form of ID to verify your identity and residency details.
- Income verification: Recent payslips, tax returns, or an employment contract to confirm your income meets the Home Guarantee Scheme eligibility thresholds set by the Australian Government.
- Deposit and savings evidence: Bank statements showing your savings history and deposit amount, demonstrating that you meet the minimum deposit requirement under the scheme.
- Property purchase information: Details of the property you plan to purchase, including the contract of sale, to confirm the home falls within the relevant price caps and meets scheme requirements.
Having these documents ready can help lenders assess your application more efficiently and give you greater clarity about whether you are eligible to apply under the permanent resident home guarantee pathway.
How do lender policies differ for permanent residents?
While the Home Guarantee Scheme is set by the Australian Government, each participating lender applies its own lending policies when assessing permanent resident applications. This means your experience can vary depending on who you apply with.
Here are some of the key ways lender policies may differ for permanent residents:
- Minimum income and employment stability requirements
- Length of time holding permanent residency
- Types of visas accepted under lender policy
- Maximum loan-to-value ratio offered
- Deposit requirements above the scheme minimum
- Additional verification checks for residency status
- Approval timeframes and assessment processes
Because of these variations, some lenders may be more flexible than others when it comes to permanent resident applicants. Speaking with a broker or finance professional can help you identify which participating lender is best suited to your circumstances before you apply.
What should permanent residents consider before applying?
Before applying for the Home Guarantee Scheme, permanent residents should take the time to review a few key factors that can influence eligibility, loan approval, and the overall buying experience.
Key considerations before you apply:
- Permanent residency status: You must hold a valid permanent residency visa at the time you apply and continue to meet residency requirements throughout the purchase process.
- First home buyer eligibility: The scheme is only available to first home buyers who have not previously owned property in Australia, including jointly with a partner.
- Income thresholds: Your income must fall within the limits set by the Australian Government, as assessed by participating lenders.
- Deposit size and savings history: While the scheme allows for a lower deposit, lenders will still assess your savings to confirm you meet the minimum deposit requirement and have genuine savings.
- Property price caps: The home you intend to purchase must fall within the price caps for your location, including metropolitan Melbourne and regional areas.
- Property type: The property must meet scheme criteria and be suitable as your principal place of residence, not an investment.
- Borrowing capacity: Even with the Home Guarantee Scheme, lenders will assess your ability to comfortably repay the home loan.
- Lender policy differences: Each participating lender applies its own lending policies, which can affect eligibility and loan terms for permanent residents.
- Scheme availability: Places in the Home Guarantee Scheme are limited each financial year, so timing can play an important role.
Reviewing these points early can help permanent residents apply with greater confidence and reduce the risk of delays.
Ready to apply as a permanent resident under the Home Guarantee Scheme?
If you are a permanent resident planning to buy your first home, it’s normal to have questions about where you fit within the Home Guarantee Scheme. From eligibility rules to deposit requirements, there is a lot to take in, especially when you are making such a big decision.
Carlisle Homes supports permanent resident buyers by offering clear eligibility checks and guidance through the application process. This helps you determine whether the Home Guarantee Scheme is right for you before you proceed, giving you confidence as you explore your finance options and plan your home build.
If you would like reassurance before applying, or simply want to discuss your situation with an expert, we can help you take the next step with clarity. With the right guidance, the process of building your first home can feel far more manageable and focused on what matters most: building a home that suits your lifestyle and future plans.