FAQs and Key Terms

A Guarantee is a legal arrangement between Housing Australia and a Participating Lender who provides a home loan under the Home Guarantee Scheme.

A Guarantee protects the Participating Lender, not you. It is not a cash payment to you, or a deposit for your home - you will not receive any funds.

It essentially means that if a home buyer defaults on their home loan, and selling the property doesn't cover the outstanding amount they owe on their mortgage, then Housing Australia 'guarantees' to pay the lender a shortfall up to a pre-agreed limit.

For the First Home Guarantee and the Regional First Home Buyer Guarantee, the pre-agreed limit is up to 15% of the Property Value; and for the Family Home Guarantee it is up to 18%. The exact amount is set during the application process and depends on the deposit and the Property Value when purchased.

The Property Value is assessed by the Participating Lender, and it may be different to the purchase price. In those situations, please speak to your Participating Lender about what this means for you. 

Home buyers usually need a deposit of 20% of the Property Value to get a home loan.

Under the Home Guarantee Scheme, Housing Australia provides a Guarantee to the lender, so home buyers only need a 2% or 5% deposit (depending on the type of Guarantee).

This means that you don’t have to keep saving for a larger deposit and can buy a home sooner, with lower upfront costs. 

For FY2025/2026:

• First Home Guarantee - 35,000 places
• Regional First Home Buyer Guarantee - 10,000 places
• Family Home Guarantee - 5,000 places.

You need to save a minimum deposit of 5% of the Property Value for the First Home Guarantee or Regional First Home Buyer Guarantee, and 2% of the Property Value for the Family Home Guarantee.

The Property Value is assessed by the Participating Lender, and it may be different to the purchase price. In those situations speak to your Participating Lender about what this means for you. 

The deposit requirement is for a percentage of the Property Value.

Property Value is assessed by the Participating Lender, and it may be different to the purchase price. In those situations, please speak to your Participating Lender about what this means for you.
 

If you are applying on your own, your taxable income can be up to $125,000 a year. If you are applying with another person, then your combined taxable income can be up to $200,000 a year.

You’ll need to provide the Participating Lender with your Notice of Assessment issued by the Australian Taxation Office for the previous financial year.
 

The First Home Guarantee and Regional First Home Buyer Guarantee are for first home buyers or those who haven’t owned a property in Australia in the last 10 years.

The Family Home Guarantee is for buyers who don't currently own property or those who won't have any other property interest once their new home settles.

No, you don’t need to pay any fees for a Guarantee. However, you are responsible for all the costs and repayments on your home loan.

You can buy a new or existing residential property that you will live in as an owner-occupier.

Maximum price caps apply and vary by location. Price caps are the same for all Guarantees. Note both the purchase price and the Property Value must not exceed the price cap. For new builds with a vacant land and a separate contract to build a home, the combined land purchase price and build cost must also be equal to or under the price cap.

Property Value is assessed by the Participating Lender, and it may be different to the purchase price. In those situations, please speak to your Participating Lender about what this means for you.

Use the Postcode Search Tool on this website to check the price cap for the location you want to buy in. The tool is only a guide - confirm the price cap with your Participating Lender for any property you are considering buying.
 

To help you work out which Guarantee might suit you:

• take a look at the Home Guarantee Scheme Comparison Table that compares the key features of each Guarantee
• use the Eligibility Tool for a quick check of the main eligibility criteria
• talk to a Participating Lender.

You can apply through a Participating Lender authorised by Housing Australia to offer the Home Guarantee Scheme.

They will assess your eligibility based on their lending criteria, guide you through the application process, and explain the documents and information to provide. They will submit an application to Housing Australia and inform you if you are eligible and if a place is available for you. 
 

Housing Australia has authorised Participating Lenders to offer the Home Guarantee Scheme. Check out who is on the list here. 

The Guarantee stays in place until one of the following happens:

• it becomes evident at any time that your home loan was not eligible for the Home Guarantee Scheme
• you stop living in the property without an exemption (circumstances to be discussed with your Participating Lender); if so your Participating Lender may require you to pay LMI or other significant costs relating to your loan
• you rent out the property
• you have fully repaid your home loan, including refinancing with a lender that is not a Participating Lender
• your loan principal balance drops to 80% or less of the Property Value, based on your scheduled home loan repayments (prepayments you can redraw are not counted)
• you borrow additional funds against the property from your Participating Lender, or
• you sell your home.
   

If a Scheme place is reserved on or after 1 July 2025, the relevant Notice of Assessment (NOA) for assessing income eligibility must be from the 2024–25 financial year.

We understand some applicants may not yet have received their 2024–25 NOA, as their tax return may still be under assessment by the Australian Taxation Office (ATO). In these cases:

• Participating Lenders may still progress the application to pre-approval between 1 July 2025 and 31 August
• once pre-approved, the applicant has 90 calendar days to sign a contract of sale and enter into a loan agreement with their lender
• however, the Guarantee cannot be issued, and settlement cannot occur, until the 2024-25 NOA is provided to the lender.

We encourage all prospective applicants to finalise their 2024-25 tax return as soon as possible and to speak with a Participating Lender or mortgage broker to discuss their individual circumstances. 

The Federal Government announced that the Scheme will be expanded from 1 October 2025, in line with commitments made during this year’s Federal election.

The expansion to the Scheme includes the following changes:

• removing income caps for Scheme applicants
• increasing the property price caps in line with average house prices
• removing the limit on the number of available places for all guarantees
• the Regional First Home Buyer Guarantee will be closed to new applications from 1 October 2025, as regional home buyers now have unlimited access to places under the First Home Guarantee and Family Home Guarantee.

No. These changes to the Scheme will commence from 1 October 2025. Housing Australia will work with Participating Lenders to implement these changes ready for 1 October 2025.  You will only be able to apply under the new criteria from that date. You can continue to apply for the Scheme today if you meet the current eligibility criteria.

The Postcode Search Tool will be updated on 1 October to reflect the new price caps. Until then:

• check which area your suburb falls under (for example, “capital city,” “regional centre,” or “other”).
• use the table below to see the current and new price cap for that area.

If you’re unsure which area your suburb falls into, your Participating Lender can confirm this for you when you apply.

The Federal Government has announced there will be an increase to property price caps, in some areas, effective from 1 October 2025. These changes ensure property price caps are in line with average house prices in each area.

* Regional centres are (1) in New South Wales - Illawarra, Newcastle and Lake Macquarie, (2) in Victoria - Geelong, and (3) in Queensland - Gold Coast and Sunshine Coast.

The property price caps are determined by the Australian Government and are updated periodically to reflect housing market conditions across different regions.

Scheme applications are assessed against the eligibility criteria in effect on the date your application is made by the Participating Lender. If you applied prior to 1 October 2025, the new eligibility criteria and property price caps do not apply.

If you intend to settle on your existing Scheme application (under the pre-1 October Scheme criteria), you can do so following the usual process with your Participating Lender. All current eligibility criteria and required supporting documentation will still apply.

If you want to take advantage of the new Scheme eligibility criteria and property price caps (effective from 1 October 2025), you will need to contact your Participating Lender to withdraw your existing application and submit a new Scheme application.

If you have already signed a contract of sale, you can still apply for a Scheme place after 1 October 2025. The Scheme eligibility criteria that will apply is determined by the date the Scheme place is initially reserved by a Participating Lender - not the date the contract of sale was signed.

• if the Scheme place was reserved before 1 October 2025, the application will be assessed against the current eligibility criteria and property price caps (pre-1 October).
• if the Scheme place is reserved on or after 1 October 2025, the application will be assessed against the new eligibility criteria and property price caps that take effect from 1 October.

You should be aware that there are risks in signing a contract of sale before having your home loan application and Scheme eligibility formally assessed and confirmed. You should carefully consider this and seek advice from your Participating Lender (or mortgage broker, if applicable) about your specific circumstances.

Please also note that you must apply for and secure a Scheme place before settlement of the property purchase, including for vacant land.

Yes. Existing Regional First Home Buyer Guarantee applications that have been pre-approved are still valid and can be finalised even after 1 October 2025. However, the pre-1 October 2025 income caps and property price caps will still apply and your lender will still require your Notice of Assessment.

The Regional First Home Buyer Guarantee will be closed to new applications from 1 October 2025. Reserved places that have not progressed to a pre-approved status by 1 October 2025 will need to resubmitted under the First Home Guarantee or Family Home Guarantee. Speak to your Participating Lender on which Guarantee would best suit you.

Yes. But if you choose to withdraw an application submitted prior to 1 October 2025 and start a new application after 1 October 2025, a new Home Buyer Declaration is required if you are applying for a different Guarantee type (for example, you withdraw your  Regional First Home Buyer Guarantee application and re-apply under the First Home Guarantee).

You should be aware that withdrawing and reapplying may affect application timeframes and settlement dates. Please discuss any implications with your Participating Lender.

If you apply for a Scheme place on or after 1 October 2025, you will no longer be assessed against income caps under the Scheme. However, if the application was submitted prior to 1 October 2025, the pre-1 October 2025 eligibility criteria continue to apply, including income caps and the requirement to provide a Notice of Assessment.

If you apply for a Scheme place prior to 1 October 2025, the pre-1 October 2025 eligibility criteria and property price caps continue to apply, even if you don’t find and settle on a property until after 1 October 2025.

For applications submitted to a Participating Lender on or after 1 October 2025, the new property price caps will apply.