You may be eligible to buy a home sooner with a Home Guarantee Scheme

The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers to buy a home sooner. The Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.

The Scheme includes three types of Guarantees:  

First Home Guarantee (FHBG) – supporting eligible home buyers to buy a home sooner, with a deposit as little as 5%. For FY2023-24, 35,000 places are available. 

Under the expanded Home Guarantee Scheme, the Government is now releasing 35,000 First Home Guarantee places each year to support eligible first home buyers or buyers who have not owned a property in the past 10 years to purchase a new or existing home with a deposit as low as 5%. Find out more about the First Home Guarantee.

Family Home Guarantee (FHG) – supporting eligible single parents and eligible single legal guardians of at least one dependent to buy a home sooner, with a deposit as little as 2%. For FY2023-24, 5,000 places are available.

5,000 guarantees will be issued each year until 30 June 2025 to support eligible single parents or legal guardians with at least one dependent child to buy their first home or to re-enter the housing market with a deposit of as little as 2%. Discover more about the benefits of the Family Home Guarantee.

Regional First Home Buyer Guarantee (RFHBG) - supporting eligible regional home buyers to buy a home sooner, in a regional area, with a deposit as little as 5%. For FY2023-24, 10,000 places are available.

10,000 guarantees will be issued each year until 30 June 2025 to support eligible applicants living in regional areas to buy their first home in a regional area with a deposit as low as 5%.

How the HGS works

NHFIC works with Participating Lenders to facilitate loans to eligible home buyers who meet income eligibility thresholds and other eligibility criteria and don’t have the 20% deposit typically required for a home loan. Mortgage Choice has a number of participating lenders on our panel enabling us to apply for a scheme place on your behalf.

Eligible home buyers can apply for a loan through Mortgage Choice with a Participating Lender who has been authorised by NHFIC to participate in the HGS. 

NHFIC provides a Guarantee to the Participating Lender of up to 15% of the value of a home loan under the First Home Guarantee or the Regional First Home Buyer Guarantee; and up to 18% under the Family Home Guarantee. This enables the home buyer to buy a home without paying Lenders Mortgage Insurance. The Guarantee is not a cash payment or a deposit for a home loan. Eligibility criteria apply.

FY24 Expanded Eligibility All Schemes

From 1 Jul 23, Permanent Residents will now be eligible for the First Home Buyer, Family Home and Regional First Home Buyer Guarantees.  First Home and Regional First Home Buyer Guarantees: 

• The schemes will be eligible for Non-First Home Buyers who haven’t owned a property in the last 10 years.
• Friends, siblings, and other family members will also be eligible for joint applications.
• Family Home Guarantee  We’ll be able to assist eligible legal guardians under the expanded eligibility criteria. This means single legal guardians will be able to apply under the Family Home Guarantee ensuring they have an eligible dependent under their care. Single aunts, uncles, or grandparents are some examples. 

To find out if you are eligible for a scheme place, contact us today!