First Home Guarantee

The First Home Guarantee helps eligible buyers purchase a home sooner with a low deposit. We provide our expert advice and services on what to do when purchasing your first home.

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Newcastle, Maitland & Hunter Valley Mortgage Broker and Loans Specialist

What Is the First Home Guarantee (FHBG)?

The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative that helps eligible first-home buyers purchase a home sooner. The National Housing Finance and Investment Corporation (NHFIC) administers the scheme 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 2024 – 30 June 2023, 35,000 FHBG places are available to eligible first-home buyers.

To apply for FHBG, home buyer’s 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.

To check your eligibility quickly, access the Eligibility Tool – a short questionnaire that helps home buyers identify which Guarantee/s they may qualify for.

How to Apply

You can apply through a Participating Lender or an authorised representative, such as a mortgage broker. However, NHFIC does not accept applications for the HGS or provide personal financial advice.

In addition, home buyers and their advisors should consult a Participating Lender and seek independent financial and legal advice to determine whether a specific home loan, property, and the terms of the HGS align with their personal circumstances and goals.

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.

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Property types and price caps

Under the First Home Guarantee (FHBG), home buyers can purchase a range of residential properties, 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.

Property Price Caps

To help you plan, use the Property Price Cap Tool to check the property price caps for each location.

Timeframes and Eligibility Criteria

However, different property types come with specific timeframes and eligibility criteria. You may need to execute the contract of sale and, where applicable, the eligible building contract by certain dates.

More Information

For more detailed guidance, contact a Participating Lender for more information, including the full list of property criteria.

Deposit required

Deposit Required for the First Home Guarantee

Home buyers applying for the First Home Guarantee (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%, however, Participating Lenders may require a higher percentage deposit based on individual financial circumstances.

In addition, 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.

Furthermore, 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.

Income Test for the First Home Guarantee

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

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.

Relevant Notice of Assessment Period

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.