What is the Home Guarantee Scheme?

The Home Guarantee Scheme is an Australian Government initiative aimed at supporting eligible homebuyers in purchasing their first home. Beginning on 1 October, this expanded scheme offers a significant reduction in the barriers associated with homeownership, allowing individuals and families to enter the property market with a much lower deposit. The government guarantees a portion of your home loan, helping lenders provide loans with smaller deposits.

Eligibility criteria for the Home Guarantee Scheme

To qualify for the First Home Guarantee Scheme, applicants must meet certain criteria set by the Australian Government. These requirements ensure the scheme supports genuine first home buyers and families entering the property market.

Residency and citizenship

You must be an Australian citizen or permanent resident, and usually at least 18 years of age at the time of application.

First home buyer status

The scheme is generally limited to people purchasing their first home, although some exceptions may apply for those who have not owned a property in several years.

Property and location rules

The property must fall within the set price caps for Victoria, which differ between metropolitan Melbourne and regional areas.

Deposit requirements

To qualify for the government guarantee, applicants need to save a minimum 5% deposit but no more than 20%.

What documents are 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

Frequently Asked Questions (FAQs)

Can I use the Home Guarantee Scheme for new builds? 

Yes, the scheme is applicable for purchasing both new homes and established properties, including off-the-plan purchases.

What should I know about the changes to eligibility?

The recent changes mean there are now no caps on the number of placements available, and there are no income limits, making it easier for more Australians to benefit from the scheme.

What happens if my financial situation changes after applying?

If your financial situation changes, for example, a reduction in income or job loss, it could affect your ability to meet loan serviceability requirements. It’s essential to inform your lender immediately, as they can reassess your application and provide guidance on the next steps. In some cases, additional documentation may be required to demonstrate your financial position. Early communication with your lender helps avoid delays or potential withdrawal of your application under the Home Guarantee Scheme. You can also make use of our first home buying calculator to ensure you’re in the best position for homeownership.

Can single parents access the Home Guarantee Scheme?

Yes, supporting single parents is one of the core aims of the First Home Buyer Guarantee Scheme. The scheme allows eligible single parents to buy a home with a reduced deposit, helping them overcome one of the biggest barriers to homeownership. By removing the need for Lenders Mortgage Insurance, it provides a more affordable pathway into the property market. This makes the scheme especially valuable for families who may otherwise struggle to save the traditional 20% deposit.