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High fives for a 5% deposit with the First Home Guarantee
House outline in circle with 5% written in house

Minimum 5% deposit

Get into your first home sooner

 
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Pay no Lenders Mortgage Insurance

Save thousands in LMI costs

 
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Access to our best products

All members get access to the same loan benefits

What is it?

The First Home Guarantee (FHBG) is an Australian Government initiative to help eligible first home buyers purchase a home sooner. It does this by providing a guarantee that will allow eligible first home buyers to purchase a home with a deposit of as little as 5% without needing to pay for Lenders Mortgage Insurance (LMI).

From 1 July 2022, there will be 35,000 FHBG places available for the 2022-23 financial year.

Are you eligible for the First Home Guarantee?

To apply for the First Home Guarantee, you'll be subject to the following eligibility criteria. You need to be able to provide documentation of your eligibility to secure your position.

Eligibility criteria includes:

  • You must be purchasing an eligible property.
  • You must be an Australian citizen at least 18 years of age. Permanent residents are not eligible.
  • You must have earned less than $125,000 as a single person, and less than $200,000 for couples in the last financial year. Couples must be married or de-facto.
  • There are also regional property price caps set by state and territory governments. You can check the property price cap for your area on the National Housing Finance and Investment Corporation (NHFIC) website.

Check your eligibility

Does the property qualify?

Eligible property types for the First Home Guarantee include:

  • an existing house, townhouse or apartment
  • a house and land package
  • land and a separate contract to build a home, or
  • an off-the-plan apartment or townhouse.

If you're wanting to find out if the area you are looking to buy in meets the property price threshold, simply follow the link and enter the postcode to find out the property price cap.

Property cap search

Frequently asked questions

Under the First Home Guarantee, eligible applicants can get a home loan from participating lenders with a deposit of as little as 5%, without paying Lenders Mortgage Insurance (LMI), enabling you to get into your first home sooner.

Usually, first home buyers with less than a 20% deposit need to pay lenders mortgage insurance. Under the First Home Guarantee, the government agrees to guarantee up to a maximum of 15% of the value of the property purchased, supporting first home buyers to buy or build a new residential property with a deposit of as little as 5%.

Pros:

  • Allows you to enter the property market earlier, as you can get a home loan with a deposit as little as 5%.
  • Don’t need to pay Lenders Mortgage Insurance (LMI).
  • Can be used alongside the First Home Super Saver Scheme.
  • Eligible to receive government support until the loan balance is reduced to below 80% loan to valuation ratio.

Cons:

  • Buying with a lower deposit means the loan will take longer to pay off, because the amount you owe will be larger.
  • You may end up paying more interest over the life of the loan, as your total loan size will be larger.

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Fact sheets and information guides


    NHFIC First Home Guarantee Fact Sheet

    NHFIC First Home Guarantee Information Guide