First Home Buyer Guarantee Scheme: Capital Cities

The First Home Guarantee (FHBG) is part of the Federal Government’s Home Guarantee Scheme (HGS), assisting aspiring first home buyers get into the market sooner with the minimum deposit of just 5% in every capital city (as well as major regional centres) across Australia. 

Under this scheme, first home buyers can apply for a maximum guarantee of up to 15%. It is important to note that the Government does not provide this guarantee in the form of a cash deposit. Instead of having your parents provide a guarantor loan, the Government is providing this. Therefore, it is a great initiative for first home buyers who don’t have access to parent guarantor loans.

How do I know if I am eligible for this scheme?

The following eligibility criteria apply:

  • applying as an individual or joint applicants (with your spouse or sibling)
  • an Australian citizen(s) or permanent resident(s) when applying for the FHBG scheme.
  • at least 18 years of age
  • earning up to $125,000 if you are applying on your own (assessed on your previous financial year’s Notice of Assessment)
  • earning up to $200,000 if you are applying with your partner or sibling (assessed on your previous financial year’s Notice of Assessment)
  • intending to live in the property
  • All applicants must not have owned a property over the past 10 years

Benefits of the FHBG Scheme?

There are numerous benefits if you take advantage of the FHBG scheme, some of these include:

  • You avoid Lenders Mortgage Insurance (LMI), which can costs tens of thousands of dollars
  • You can get into the market with a smaller deposit
  • Own your first home sooner
  • Avoid the high interest rates for low deposit loans, you will qualify for interest rates that are advertised to buyers buying their first home with a 20% deposit
  • The Government Guarantee doesn’t stay with you for the life of the loan. The guarantee can be released when your loan falls to 80% of the property value

Is there a maximum purchase price for my first home?

Unfortunately, the Government’s scheme is restricted in that there a price caps for each capital city across in Australia. These price limits are as follows:

State Capital City and Regional Centre Rest of State
NSW $900,000 $750,000
VIC $800,000 $650,000
QLD $700,000 $550,000
WA $600,000 $450,000
SA $600,000 $450,000
TAS $600,000 $450,000
ACT $750,000 $750,000
NT $600,000 $600,000

Which lenders will I be able to get my first home loan with?

FHBA has access to the majority of lenders that the Federal Government has authorised to participate under the FHBG scheme. There are currently 33 lenders authorised to operate under this scheme, with 3 of the big 4 banks included. Under this scheme, you will avoid paying LMI.



To see exactly which lenders will assist you in getting your first home loan under this scheme, click here.

First home buyers should consider consulting a participating lender and seek independent financial and legal advice about whether a particular home loan or property, and the terms of the HGS suit personal circumstances and objectives. FHBA Coaches are qualified to assist you in finding the best lender for your situation. FHBA interest rates under this scheme start from 5.89% (at the time of writing on 27th Feb 2024)


Written By,

First Home Buyers Australia


First Home Buyers Australia
First Home Buyers Australia

Australia’s leading organisation specialising in assisting first home buyers achieve the great Australian dream of property ownership.