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First Home Guarantee

If you're looking to purchase a home, the First Home Guarantee is here to make buying or building it easier.

Minimum 5% deposit

Get into your home sooner.

Pay no Lender's Mortgage Insurance

Save thousands in LMI costs.

Access to our best products

All our customers get access to the same loan benefits.

What is the First Home Guarantee?

The First Home Guarantee (FHBG) is an Australian Government initiative to help eligible home buyers purchase a home sooner. It does this by providing a guarantee that will allow eligible 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 2023, there are 35,000 FHBG places available for the 2023-24 financial year.

Are you eligible?

To apply to the First Home Guarantee, you'll be subject to certain eligibility criteria including those outlined below. You need to provide documentation to prove your eligibility and secure your position.

  • You must be purchasing an eligible property.
  • You can apply as an individual or jointly with a partner, friend, sibling, and other family member.  
  • You must be an Australian citizen or permanent resident at the time you enter the loan.
  • You must be at least 18 years of age.
  • You must be earning up to $125,000 for individuals or $200,000 for couples, as shown on the Notice of Assessment (issued by the Australian Taxation Office). 
  • You must be first home buyers who have not previously owned, or previous homeowners who haven't owned a property in Australia in the past 10 years.
  • You must intend to be owner-occupiers of the purchased property.
  • There are also property price caps set by the Australian government.

What property types meet the eligibility criteria?

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.

Housing Australia has also developed some tools to help first home buyers determine the property price caps for suburbs they’re looking to purchase a property in. All you need to do is enter the postcode for the area you want to buy in to find out more information.

Property price 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 eligible first home buyers to buy or build a new residential property with a deposit of as little as 5%.


  • 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.


  • 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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Important information

    Meeting the eligibility criteria does not mean that you will receive either a guarantee or a loan from a participating lender.

    First Home Guarantee Fact Sheet

    First Home Guarantee Information Guide