The first home guarantee scheme explained
To help address Australia’s affordable housing crisis, the government created the First Home Guarantee scheme.
Our first home buyer specialists are here to break down the important details into simple terms to help you see if you are eligible.
Here is everything you need to know about this awesome scheme and how it can help you as a first time home buyer.
What is the First Home Guarantee?
The First Home Guarantee scheme is a program run by the Australian Government. This initiative is designed to help eligible first time home buyers buy a home sooner.
Eligible buyers can qualify to purchase a home with as low as a 5% deposit and no LMI (lender’s mortgage insurance) payments.
For the FHBG, the federal government can act as a guarantor for up to 15% of the loan.
You may also like: The essential first home buyer’s guide
First Home Guarantee eligibility requirements
From 1 July 2024, 50,000 First Home Guarantee (FHBG) homes will be made available.
To be eligible to apply for the FHBG, you must meet the following criteria:
- Residency Status: Must be a permanent resident, Australian citizen, or a New Zealand 444 visa holder.
- Age: Applicants must be at least 18 years of age.
- Property Occupancy: Buyers must intend to occupy the property as their primary residence.
- Income Limits: Joint applicants can earn up to $200,000 and individuals can earn up to $125,000, as shown on the Notice of Assessment from the Australian Taxation Office.
- Previous Property Ownership: Buyers must not have owned a property in Australia within the past ten years.
- Application Type: Can apply as an individual or two joint applicants.
- Property Type: Must be buying a residential property, which includes:
- Home
- Apartment
- Townhouse
- House and land package
- Off-the-plan townhouse or apartment
- Land and a home building contract
These eligibility criteria ensure that the FHBG assists those who are genuinely in need of support to enter the property market, including New Zealanders who migrate to Australia on the 444 visa.
You can use the eligibility checker to see if you qualify or contact us and we can help you determine your eligibility.
First Home Guarantee 2023 price caps
The First Home Guarantee price caps are as follows:
| State | Capital city and regional centre* | Rest of state |
|---|---|---|
| NSW | $900,000 | $750,000 |
| VIC | $800,000 | $650,000 |
| QLD | $700,000 | $550,000 |
| WA | $600,000 | $450,000 |
| SA | $600,000 | $450,000 |
| TAS | $600,000 | $450,000 |
| Territory | All areas | |
| ACT | $750,000 | |
| NT Regional | $600,000 | |
| Jervis Bay Territory & Norfolk Island | $550,000 | |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
*Regional centres are Newcastle and Lake Macquarie, Illawarra, Geelong, Gold Coast and Sunshine Coast.
Source: NHFIC.gov.au
Regional First Home Guarantee price caps
The Regional First Home Guarantee price caps are as follows:
| State | Regional centre* | All other regional areas |
|---|---|---|
| NSW | $900,000 | $750,000 |
| VIC | $800,000 | $650,000 |
| QLD | $700,000 | $550,000 |
| WA | $450,000 | |
| SA | $450,000 | |
| TAS | $450,000 | |
| Territory | Regional area | |
| ACT | Not applicable | |
| NT Regional | $600,000 | |
| Jervis Bay Territory & Norfolk Island | $550,000 | |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
*Regional centres are Newcastle and Lake Macquarie, Illawarra, Geelong, Gold Coast and Sunshine Coast.
Source: NHFIC.gov.au
How to apply for the First Home Guarantee
Want to apply for the FHBG? Here’s the easiest way to do it.
Get in touch with us
Give us a call or organise a meet-up with our knowledgeable team of first time home buyer specialists.
We can help you check your eligibility for the scheme. From there, we can help you complete your FHBG application.
We take all the guesswork out of it and can help make the process as smooth as possible.
Submit your application
Once we confirm your eligibility for the FHBG, one of our first time home buyer specialists will help you submit your application.
We have a thorough understanding of the eligibility criteria, participating lenders, and the entire application process.
Our first home buyer specialists will help you fill out your application accurately and promptly so you can move forward toward home ownership.
Buy your first home
Once you determine your eligibility and get your application approved, it’s time for the fun part! Buying or building your first home!
If your application is approved, you’ll need to buy an eligible home within 90 days of approval.
Recent changes to the scheme
The recent changes to the FHBG and RFHBG are aimed at expanding eligibility for homeowners.
These changes increase the number of people who will be eligible and expand the value of properties that are eligible for the FHBG.
Changes effective 1 July 2023
- Joint Applications: Friends, family members, and siblings can now apply jointly for the FHBG and RFHBG. Previously, the FHBG was restricted to single or married applicants.
- Residency Eligibility: The scheme is now available for first home buyers who are permanent Australian residents. Previously, the program was only open to Australian citizens.
- Property Ownership History: The FHBG and RFHBG now include home buyers who have not owned an Australian property in the last 10 years. This expands eligibility beyond just first-time home buyers.
- Regional Residency Requirement: Applicants for the RFHBG can now be exempt from the requirement to have lived in the region or an adjacent region for the previous 12-month period. This exemption, previously available only to members of the Australian Defence Force, can benefit employees who had to relocate recently.
Changes effective 1 July 2024
Starting from 1 July 2024, further adjustments have been made to enhance the accessibility and value of the FHBG:
- New Inclusivity: The scheme now includes New Zealand 444 visa holders as well as Australian permanent residents and citizens.
- KiwiSaver Integration: New Zealand citizens can transfer their KiwiSaver funds using the First Home Super Saver Scheme (FHSSS) to meet deposit requirements. The maximum you can draw for a deposit using the FHSSS is $15,000 per applicant, meaning dual applicants from New Zealand can pull $15,000 each.
- Maximum Package Value: The maximum package through the government scheme is $600,000, with a required 5% deposit of $30,000. Dual applicants can cover their 5% deposit by transferring their KiwiSaver funds.
- Income and Package Limits: There have been no increases to the income limits or the package limits, which remain as follows:
- WA Max Package Limit: $600,000
- Income Limits: Single applicants can earn up to $125,000, and coupled applicants can earn up to $200,000, as per their Notice of Assessment (NOA).
These changes further broaden the scope of the FHBG, making it more inclusive and accessible to a wider range of potential homeowners.
Have a question?
Do you have questions relating to your eligibility? Or are you feeling overwhelmed by the FHBG application process? Our team of first home buyer experts is here to walk you through each step and help you realise your dream of becoming a homeowner in Australia.
With our wide array of home design options, knowledgeable first home buyer home loan specialists, and dedicated team, we are your one-stop-shop for home ownership.
Don’t wait to become a homeowner any longer! Call us on 0424 429 483 to speak with one of our first home buyer specialists today. We look forward to helping you!
FAQs
The Home Guarantee Scheme provides a guarantee to participating lenders, allowing eligible applicants to purchase a home with a deposit as low as 2% of the property purchase price.
The minimum deposit required for the Home Guarantee Scheme is 2% of the property purchase price.
The maximum property purchase price for the Home Guarantee Scheme varies depending on the location of the property. In Western Australia, the maximum property purchase price for the First Home Guarantee is $600,000, while the maximum for the Regional First Home Guarantee is $450,000.
Yes, Australian permanent residents are eligible to apply for the Home Guarantee Scheme.
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