First Home Guarantee

In Financial Services is a Mortgage Broker and Loans Specialist based in Newcastle, Maitland & Hunter Valley NSW.

The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible first-home buyers to purchase a home sooner. It is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.

Under the FHBG, part of an eligible first home buyer’s home loan from a Participating Lender is guaranteed by NHFIC. This enables an eligible home buyer to purchase a home with as little as a 5% deposit without paying Lender’s Mortgage Insurance.

Any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating lender). This Guarantee is not a cash payment or a deposit for a home loan.

From 1 July 2022 – 30 June 2023, 35,000 FHBG places are available to eligible first-home buyers.


To apply for the FHBG, home buyers must be:

  • applying as an individual or couple (married / de facto)
  • an Australian citizen(s) at the time they enter the loan
  • at least 18 years of age
  • earning up to $125,000 for individuals or $200,000 for couples, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
  • intending to be owner-occupiers of the purchased property
  • first home buyers who have not previously owned, or had an interest in, a property in Australia.

Access the Eligibility Tool – a short questionnaire to help home buyers identify which Guarantee/s they may be eligible for.

Property types and price caps

Under the FHBG, home buyers can purchase a residential property, including:

  • an existing house, townhouse or apartment
  • a house and land package
  • land and a separate contract to build a home
  • an off-the-plan apartment or townhouse.

Use the Property Price Cap Tool to look up the property price caps for each location.

Specific timeframes and criteria apply to the different property types. The contract of sale and (if applicable) eligible building contract may have to be executed by specific dates.

Contact a Participating Lender for more information, including the full list of property criteria.

How to Apply

Applications can only be made with a Participating Lender or their authorised representative (a mortgage broker). NHFIC does not accept applications for the HGS or provide personal financial advice. 

Home buyers (and those advising them) should consider consulting with a Participating Lender, and seeking independent financial and legal advice about whether a particular home loan or property and the terms of the HGS suit personal circumstances and objectives. 

Before entering into a home loan agreement, home buyers should consider talking with their lender (or broker) about the potential implications of changing interest rates or house prices on individual circumstances.  

Deposit required

Home buyers applying for the FHBG need to have between 5% and 20% of the value of an eligible property saved as a deposit. The minimum deposit required for the FHBG is 5%, but Participating Lenders may require a higher percentage deposit based on individual financial circumstances.  

Home buyers should speak with a Participating Lender to find out whether a deposit is made up of genuine savings for the purposes of their lending criteria and the FHBG.  

Home buyers should confirm with their Participating Lender whether any cash grants received under other Australian Government, State or Territory schemes or programs can be considered as part of their genuine savings. 

The HGS includes an income test, which is assessed by lenders using a Notice of Assessment (NOA).  

Once your tax return has been processed, the Australian Taxation Office (ATO) sends a statement called the Notice of Assessment to your myGov Inbox 

For HGS reservations made from 1 July 2022 to 30 June 2023, the relevant Notice of Assessment is the 2021-2022 financial year. NHFIC advises applicants to speak to their Participating Lender to understand the risk of signing a Contract of Sale prior to obtaining the latest Notice of Assessment. 

Contact the ATO for more information about Tax Time 2022. 

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