First Home Guarantee scheme
The First Home Guarantee scheme is designed to make stepping into the property market more achievable for first home buyers across Australia. By lowering the upfront costs typically associated with buying a home, it opens up opportunities to purchase sooner and with greater confidence.
Key details of the First Home Guarantee scheme
The Australian Government’s deposit scheme helps first time buyers enter the market sooner with a smaller deposit and fewer barriers.
Deposit required
As part of this deposit scheme, eligible buyers can purchase with as little as a 5% deposit without paying lenders mortgage insurance.
Who it’s for
Designed for first home buyers with limited savings, the scheme supports those who meet income thresholds and occupancy requirements.
Key benefit
Avoid paying Lenders Mortgage Insurance while buying with a smaller deposit, helping reduce upfront costs and financial pressure.
Income limits
Income caps apply and differ for singles and couples, ensuring the scheme supports buyers who meet the government criteria.
Property price caps
Property price caps apply by location, including Victoria, ensuring homes remain within affordable price ranges for buyers.
What is the First Home Guarantee scheme?
The First Home Guarantee scheme is designed to make home ownership easier. It allows you to purchase a home with a 5% deposit, without paying the ender's mortgage insurance. The government guarantees part of your loan, giving lenders more confidence and reducing the need for a larger deposit. This can make home ownership more achievable for first home buyers.
How does the First Home Guarantee scheme work?
The First Home Guarantee scheme follows a clear process, from checking eligibility to securing your loan and purchasing your home.
Review your eligibility requirements
Start by confirming you meet the eligibility criteria, including income limits, citizenship requirements, and first home buyer status.
Choose a participating home loan provider
Apply through a participating lender who can assess your eligibility, explain your borrowing capacity, and guide you through the loan process.
Secure your home loan approval
Once approved, you will receive confirmation of your loan, including the government guarantee, allowing you to move forward with confidence.
Choose your home or land package
You can then search for a suitable property within the price caps, including house and land packages or new home builds.
Finalise purchase and settlement
Once contracts are signed and finance is finalised, you can complete the settlement and take the final step into home ownership.
Who is eligible for the First Home Guarantee scheme?
To access the scheme, you must meet the current eligibility criteria set by the Australian Government. It’s important to check your eligibility early to understand your options.
Citizenship and residency requirements
Applicants must be Australian citizens or permanent residents aged 18 or over. The scheme is designed to help Australians become homeowners, with the property used as their primary residence.
Earnings requirements for the scheme
Income caps apply to help more Australians access the scheme, with different thresholds for singles and couples based on taxable income.
First home ownership criteria
The scheme is designed for genuine first home buyers who have not previously owned or had an interest in residential property in Australia, including houses, units, or land.
Property and occupancy requirements
Property price caps vary by location, including Melbourne and regional VIC, ensuring homes remain accessible across different areas.
Benefits of the First Home Guarantee scheme
The First Home Guarantee scheme offers practical benefits that make buying your first home more achievable and less financially overwhelming.
- Reduce the savings needed to buy your first home
- Avoid the added cost of Lender's Mortgage Insurance
- Access a government-backed home loan guarantee
- Improve your ability to secure a home loan
- Take a more achievable path to home ownership
Limitations of the First Home Guarantee scheme
Understanding the scheme’s limitations can help you make informed decisions and plan your path to home ownership with confidence.
- Annual allocation limits may affect availability
- Eligibility criteria must be fully met to qualify
- Property must fall within set price thresholds
- The scheme is not available for investment purchases
- Applicants must meet the lender's borrowing requirements
Can the First Home Guarantee scheme be used to build a home?
Yes, the First Home Guarantee scheme can be used to build a new home, including house and land packages. As long as the total value of the land and construction falls within the scheme’s property price caps, eligible buyers can apply. This makes it easier for first time buyers to create a home that suits their lifestyle while benefiting from a lower deposit.
How to apply for the First Home Guarantee scheme
Applying for the First Home Guarantee scheme involves using an eligibility tool and working with a participating lender who will guide you through eligibility checks, loan approval, and securing your home.
1. Confirm you meet the requirements
Check that you meet the scheme rules, including income limits and first home buyer status.
2. Speak with a participating lender
A participating lender will assess your eligibility and guide you through the application process.
3. Gather your supporting documents
You will need to supply documents, including ID, income evidence, and financial information.
What are the documents required?
Proof of identity
e.g., driver's licence or passport
Evidence of income
e.g., payslips, tax returns
Information about the property
you intend to purchase or build
First Home Guarantee scheme calculator
Use our calculator to estimate your borrowing capacity and check your eligibility under the First Home Guarantee scheme before taking the next step.
Can Carlisle Homes help with the First Home Guarantee scheme process?
Yes, Carlisle Homes can help guide you through the First Home Guarantee scheme process. While your lender manages the application, our team supports you with home design choices, budgeting guidance, and next steps so you can move forward with clarity and confidence.
Find the right home with Carlisle Homes
With the right support in place, you can start exploring homes that match your needs and budget. Carlisle Homes offers a wide range of options to help you move forward.
How to get started with Carlisle Homes
Getting started with Carlisle Homes is simple and designed to give you clarity from the beginning. Start by checking your eligibility for the First Home Guarantee scheme and understanding your budget, including how much deposit you may need. From there, you can explore a wide range of home designs and house and land packages across Melbourne and regional VIC. Our team will guide you through your options, help you understand the process, and support you in taking the next step towards building a home with confidence.
Explore other home buyer support schemes
There are several government schemes designed to support different buyers. Explore your options below to find the right pathway based on your financial situation and goals.
Frequently asked questions
Who are First Home Guarantee scheme participating lenders
First Home Guarantee scheme participating lenders are approved banks and financial institutions that work with Housing Australia to deliver the program. These lenders assess your eligibility, process your application, and manage your home loan under the scheme.
How long does the First Home Guarantee scheme take
The timeframe can vary depending on your lender, financial situation, and how quickly you provide documents. In most cases, approval follows a standard home loan process, although availability may depend on the number of places remaining under the scheme each financial year.
Are there increased property price caps under the scheme
Property price caps apply under the First Home Guarantee scheme and may change over time as part of government updates or expansion efforts. These caps vary by location, including Melbourne and regional areas, to help more Australians access suitable homes.
Do I pay stamp duty with the First Home Guarantee scheme
The First Home Guarantee scheme does not remove stamp duty, but first home buyers may be eligible for separate state-based concessions. In Victoria, stamp duty relief may apply depending on the property value and your eligibility as an owner-occupier.
Can the scheme expand to help more Australians buy
The First Home Guarantee Scheme may expand over time through government policy changes to help more Australians enter the property market. Updates can include additional places, revised criteria, or broader access across Australia.
Can I use the scheme to buy a new or existing home
The First Home Guarantee scheme can be used to buy a new or existing home, including house and land packages. The property must meet price caps and be intended as your primary residence, meaning you will live in it as an owner rather than rent it out.
Learn more about buying your first home
Looking for more guidance? These helpful articles cover key steps, tips, and insights to support you as you move towards buying your first home.
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