New Home Guarantee
Build or buy a brand new home with just 5% deposit and avoid Lenders Mortgage Insurance. Perfect for first home buyers who want to start fresh in a newly constructed property.
Key Benefits
Just 5% Deposit
Enter the market with a smaller deposit for new builds
No LMI
Government guarantee eliminates LMI costs
Brand New Home
Modern features, warranties, and energy efficiency
Government Backed
Security and confidence with government support
How It Works
Find Your New Home
Search for a brand new property - either house and land package, newly built home, or off-the-plan apartment. The property must be substantially renovated or never previously occupied.
Save Your 5% Deposit
You need to save just 5% of the property purchase price as your deposit. For a $550,000 new home, that's $27,500 instead of the traditional $110,000 (20%).
Government Guarantees 15%
The Australian Government guarantees up to 15% of the property value to the lender, eliminating the need for expensive LMI premiums.
Move Into Your New Home
Once construction is complete and settlement occurs, you move into your brand new home and make regular loan repayments like any other mortgage.
Am I Eligible? (Updated October 2025)
Personal Requirements:
- Be an Australian citizen or permanent resident
- Be at least 18 years old
- Be a natural person (not a company or trust)
- NEW: Not have owned property in Australia in the last 10 years
- Meet income eligibility requirements
- Intend to live in the property as your primary residence
Property Requirements:
- NEW properties only - never been previously occupied or substantially renovated
- Property value under regional price cap (see updated table below)
- Can be house and land package, newly built home, or off-the-plan apartment
- Minimum 5% genuine savings deposit required (but less than 20%)
- Principal and interest repayments required
- Must complete build and move in within specified timeframes
October 2025 Property Price Caps - SIGNIFICANTLY INCREASED!
| State/Territory | Capital City & Regional Centres* | Rest of State |
|---|---|---|
| New South Wales | $1,500,000 ↑ | $800,000 |
| Victoria | $950,000 ↑ | $650,000 |
| Queensland | $1,000,000 ↑ | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
| ACT (all areas) | $1,000,000 | |
| NT (all areas) | $600,000 | |
* Regional centres: NSW (Illawarra, Newcastle, Lake Macquarie), VIC (Geelong), QLD (Gold Coast, Sunshine Coast)
↑ = Significant increases from previous caps, making more new homes accessible!
Real Life Example
Jake & Sophie's New Beginning
Profile: Jake (30) and Sophie (28) are a young couple both working full-time with a combined income of $145,000. They wanted to start their family in a brand new home.
Challenge: They found the perfect house and land package for $580,000 but only had $35,000 saved. Traditional lending would require $116,000 (20%) plus $25,000 in LMI.
Solution: Using the New Home Guarantee, they only needed 5% deposit ($29,000) and paid no LMI thanks to the government guarantee.
The Numbers:
Property Price
$580,000
Deposit Required
$29,000 (5%)
LMI Saved
$25,000
Total Savings
$112,000
Result: Jake and Sophie moved into their brand new 4-bedroom home within 8 months of construction completion. They're now enjoying modern appliances, builder's warranty, and lower energy bills while building equity.
What Qualifies as a "New" Home?
House & Land Package
Purchase land and build a new home from scratch with a registered builder
Newly Built Home
A completed home that has never been previously occupied or sold
Off-the-Plan
Purchase an apartment or house before construction is completed
Important Note
Substantially renovated properties may qualify if the renovations meet certain criteria. Contact us to check if your property qualifies under the New Home Guarantee.
Frequently Asked Questions
Can I use this for an established home that's been renovated?
Only if the property has been substantially renovated and meets specific criteria. The home essentially needs to be brought up to "new" condition. We can help assess if your property qualifies.
What if construction delays push past 12 months?
Construction timelines are factored into the application process. Your lender will work with you on any delays beyond your control. It's important to choose reputable builders with good track records.
Can I use this scheme if I'm building on land I already own?
Yes, you can use the New Home Guarantee to build on land you already own, provided you meet all other eligibility criteria and the total value (land + build) is within the price caps.
How many places are available?
The government allocates 10,000 places per financial year for the New Home Guarantee. Applications are processed on a first-come, first-served basis.
Do I get a builder's warranty?
Yes! New homes in Australia come with statutory building warranties that typically cover structural defects for 6-7 years and other defects for 2 years, providing additional peace of mind.
Ready to Build Your Dream Home?
Let us help you secure the New Home Guarantee and build or buy your new home with just 5% deposit.