Page updated 08 April 2022
Since January 2020, the Government has introduced the First Home Guarantee scheme (Previously known as the First Home Loan Deposit Scheme), as a means to assist eligible first home buyers into entering the property market with less barriers and sooner.
Since its inception, the First Home Guarantee scheme has seen expansions allowing providing even more groups of people easier and faster access to buying their home through the New Home Guarantee scheme in the 2021-22 financial year, the Family Home Guarantee from 1 July 2021 – 30 June 2025 and the Regional Home Guarantee from 1 October 2022 – 30 June 2025.
From 1 July 2022 – 30 June 2025 there will be 50,000 spots per year for eligible home buyers to take advantage of the First Home Guarantee and it’s expansions. Of these 50,000 places, 35,000 will be allocated for the First Home Guarantee, while the other 15,000 will be allocated to the Family Home Guarantee (5,000), and the Regional Home Guarantee (10,000).
What is the First Home Guarantee and how does it work?
The First Home Guarantee is a Government incentive for first home buyers to purchase their first home with a deposit as low as 5%, without the need to pay Lenders’ Mortgage Insurance (LMI).
LMI is a one-insurance payment that protects the lender in the event that you default on your home loan repayments. It is usually applicable when borrowing over 80% of the value on the property, however, with the First Home Guarantee, the Government will underwrite your home loan and act as a guarantor to ensure you don’t have to pay LMI.