Can I use the First Home Guarantee with FHOG?

Yes, you can combine the First Home Guarantee with the First Home Owner Grant (FHOG) where eligible. This can significantly reduce your upfront costs when buying a new home.

What happens if I sell the property?

If you sell, the guarantee ends with no ongoing obligation. However, you won't be eligible for the scheme again. If you refinance, you may need to pay LMI to the new lender unless you've built sufficient equity.

Do I pay back the government guarantee?

No direct repayment is required. The guarantee only activates if you default and the property sale doesn't cover the loan. You repay your full loan as normal—the 5% deposit plus the 95% borrowed.

How do I apply for the First Home Guarantee scheme?

To apply for the First Home Guarantee, you'll need to meet eligibility criteria such as income limits and property purchase conditions. You can apply through participating lenders who will assess your application and may assist you in submitting it to the National Housing Finance and Investment Corporation (NHFIC). For detailed steps and to check your eligibility, visit our guide at First Home Guarantee Scheme. Keep in mind that with current mortgage rates around 5.99% p.a., your borrowing capacity depends on your financial situation, so use our borrowing power calculator to estimate your borrowing limits.

first home buyerJan 2026

First Home Guarantee Scheme

Buy with 5% deposit and avoid paying LMI.

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The First Home Guarantee (formerly First Home Loan Deposit Scheme) allows eligible first home buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance.

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How It Works

The government guarantees up to 15% of the property value, reducing your deposit requirement from 20% to 5% while avoiding LMI. The guarantee is not a cash payment—you still need to repay the full loan.

Eligibility Criteria

Australian citizen(s) aged 18+
First home buyer (never owned property in Australia)
Income under $125,000 (singles) or $200,000 (couples)
Property price within regional thresholds
Intend to live in the property as principal residence

Property Price Caps (2026)

Location	Price Cap
Sydney	$900,000
Melbourne	$800,000
Brisbane	$700,000
Regional NSW/VIC	$600,000

Caps subject to annual review. Check current limits.

Application Process

Check eligibility on Housing Australia website
Apply through a participating lender
Places are limited—apply early in the financial year

Frequently Asked Questions

The scheme offers 35,000 places per financial year (First Home Guarantee). Places are allocated through participating lenders on a first-come, first-served basis. Apply early—places often fill within months of the new financial year starting.

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