First Home Guarantee

    What is the First Home Guarantee?

    First Home Guarantee icon

    The First Home Guarantee is part of the Home Guarantee Scheme, an Australian Government initiative that helps home buyers to buy a home sooner.

    The First Home Guarantee supports home buyers who have saved a minimum deposit of 5% of the Property Value, and meet other eligibility criteria, to buy a home. Housing Australia provides a Guarantee to the Participating Lender to enable you to borrow up to 95% of the Property Value. For the First Home Guarantee, this is up to 15% of the Property Value.

    Are you eligible? 

    To qualify for the First Home Guarantee, you need to meet eligibility criteria relating to your personal circumstances including:

    • Citizenship and permanent residency - be an Australian citizen(s) or permanent resident(s)
    • Income - taxable income must be at or below the income cap - $125,000 for individuals or a combined $200,000 for joint applicants – shown in the Notice of Assessment (NOA) for the previous financial year, issued by the Australian Taxation Office (ATO)
    • Deposit - have minimum deposit savings of at least 5% of the Property Value
    • Prior property ownership - you must be a first home buyer or have not owned a property in Australia in the last 10 years (applies to both in a joint application) at the Home Loan Date*
    • Owner-occupier - you must buy or build a home to live in (investment properties are not eligible)
    • Minimum age - you must be at least 18 years old. 
    The Home Loan Date is the date you sign your home loan agreement with your Participating Lender. You should confirm this date with the lender, as this date can vary between buyers and lenders.

    Check your eligibility

    To help you work out if you are eligible for the First Home Guarantee, use the Eligibility Tool for a quick check of the main eligibility criteria. The tool is only a guide and your Participating Lender will confirm your eligibility. 

    What type of home can you buy?

    You can buy a new or existing residential property below the price cap for the location. 

    Existing house, townhouse or apartment
    House and land package
    Vacant land with separate contract to build a home
    Off-the-plan apartment or townhouse


    Check the property price caps

    Use the Postcode Search Tool 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.

    Note both the purchase price and the Property Value must not exceed the price cap. For new builds with vacant land and a separate contract to build a home, the combined land purchase price and build cost must be equal to or under the price cap. 

    What type of home loan do you need?

    You will need a home loan from a Home Guarantee Scheme Participating Lender, that meets certain requirements including that it is:

    • an owner-occupier home loan
    • requires regular Principal and Interest repayments (with limited exceptions for interest-only loans), and
    • has a term of up to 30 years (plus up to three years to build a new home).

    How do you apply?

    Home buyers can apply through a Participating Lender authorsied by Housing Australia to offer the Home Guarantee Scheme. These lenders will assess your eligibility based on their lending criteria, guide you through the application process and explain the documents and information you need 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. 

    You can't apply directly to Housing Australia for a Guarantee - only through a Participating Lender as part of a home loan application. 

    How to apply

    Check your eligibility

    Use the Eligibility Tool for a quick check of the main eligibility criteria to help you work out which Guarantee you might be eligible for. 

    Also look at the information on this website and in the Information Guides.

     

    Contact a Participating Lender

    Talk to a Participating Lender about the most suitable Guarantee for you. See the full list of lenders here. 

    They will assess your eligibility and submit an application to Housing Australia to reserve a Guarantee place for you which will be held for 14 days to give you time to complete your application and apply for a home loan.

     

    Complete your application

    Work with your Participating Lender to complete your application by providing docouments including proof of citizenship or permanent residency, your ATO Notice of Assessment, and a signed Commonwealth Statutory Declaration confirming you meet the Scheme eligibility criteria. 

    Once all your documents are provided, your Participating Lender will ask Housing Australia to secure your Guarantee Place, allowing you time to find a home. 

    Search for a home

    If you are eligible, your Participating Lender will notify you that your place is pre-approved. You have 90 days to find a home and sign a contract of sale. The home loan will also need to be approved by the lender, based on their own lending criteria.

    Use the Postcode Search Tool 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.

     

    Buy your home and move in

    Once you find your new home and sign a contract of sale, your Participating Lender will manage the final approvals.

    Once settlement is completed, it is time to move in!

    Your ongoing eligibility

    To retain the Guarantee on your home loan, you must meet ongoing requirements, such as living in the property as an owner-occupier. 

    If these criteria aren't met, the Guarantee may no longer apply, and your lender may require you to pay LMI or other additional costs. 

    What documents do you need?

    Talk to your Participating Lender about what documents and information they need for your application which will include:

    • your full name and date of birth
    • your Medicare number (including your position on the card) or PMKey (if relevant)
    • your NOA for the previous financial year
    • a completed Home Buyer Declaration (the form is available from your Participating Lender or on this website here)
    • other details to help the lender determine your eligibility for the First Home Guarantee - your Participating Lender will confirm what these are.

    Who are the Participating Lenders?

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

    Important Information
    Information on this page is general information about the Home Guarantee Scheme only. While Housing Australia has taken reasonable steps to ensure it is accurate, it does not provide any warranty that it is complete or that home buyers can rely on the information. Housing Australia does not accept any loss from reliance on the information. To apply for the Home Guarantee Scheme, home buyers will need to contact a Participating Lender who can assess their particular circumstances to determine whether they are eligible.