First Home Guarantee
Buy your first home with as little as 5% deposit and avoid paying Lenders Mortgage Insurance (LMI). The Australian Government guarantees up to 15% of your home loan value.
Key Benefits
Just 5% Deposit
Get into your home sooner with a smaller deposit requirement
No LMI
Save $10,000+ by avoiding Lenders Mortgage Insurance
Faster Homeownership
Enter the market years sooner than traditional 20% deposit
Government Backed
Security of a government guarantee on your loan
How It Works
Save Your 5% Deposit
You only need to save 5% of the property purchase price as your deposit. For a $500,000 property, that's just $25,000 instead of the traditional $100,000 (20%).
Government Guarantees 15%
The Australian Government guarantees up to 15% of the property value to the lender, eliminating the need for LMI which would typically cost $10,000-$30,000.
Lender Approves Your Loan
You apply for a loan with one of the participating lenders. The government guarantee makes lenders more comfortable approving your loan with a smaller deposit.
Move Into Your Home
Once approved, you settle on your property and move in. You make regular loan repayments just like any other home loan.
Am I Eligible? (Updated October 2025)
You Must:
- 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 (expanded eligibility!)
- Meet income eligibility requirements (contact us for current thresholds)
- Intend to live in the property as your primary residence
Property Requirements:
- Property value must be under the regional price cap (see table below)
- Can be established or newly built home
- Minimum 5% deposit required (but less than 20%)
- Principal and interest repayments required (no interest-only)
- Must move in within 6 months and continue living there
- 90-day pre-approval period to find and contract on a property
October 2025 Property Price Caps
| 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)
Real Life Example
Sarah's Journey to Homeownership
Profile: Sarah, 28, works as a nurse earning $85,000 per year. She was renting and wanted to buy her first home but only had $30,000 saved.
Challenge: Sarah wanted to buy a $600,000 apartment in Melbourne but didn't have the traditional 20% deposit ($120,000). She also couldn't afford the $20,000+ LMI premium.
Solution: Using the First Home Guarantee scheme, Sarah only needed a 5% deposit ($30,000). The government guarantee meant she didn't pay any LMI.
The Numbers:
Property Price
$600,000
Deposit Required
$30,000 (5%)
LMI Saved
$22,000
Time to Market
3 years faster
Result: Sarah moved into her own apartment within 3 months and is now building equity instead of paying rent. She saved years of extra saving and over $20,000 in LMI costs.
Check Your Eligibility in 30 Seconds
Answer a few quick questions to find out if you qualify for the First Home Guarantee scheme.
Are you an Australian citizen or permanent resident?
Frequently Asked Questions
Can I use the First Home Guarantee if I owned a property more than 10 years ago?
Yes! As of October 2025, eligibility has expanded. You can now qualify if you haven't owned property in Australia in the last 10 years, even if you previously owned a home.
How long do I have to find a property once I'm pre-approved?
You have 90 days from pre-approval to find a suitable property and sign a contract of sale. This gives you ample time to search for your perfect home.
What if my partner has owned property before?
If you're applying jointly and either party has owned property in Australia in the last 10 years, you won't be eligible. However, you can apply individually if you haven't owned property in that timeframe.
Do I repay the government guarantee?
No. The government guarantee isn't a loan or additional debt. You simply make your regular loan repayments to your lender as you would with any home loan.
Can I refinance later?
Yes, you can refinance with another participating lender and retain the scheme benefits. However, refinancing with a non-participating lender means you'll lose the guarantee.
Ready to Check Your Eligibility?
Let our experts assess your situation and help you secure your first home with the First Home Guarantee scheme.