Changes to First Home GUARANTEE scheme & single parent scheme


Not an Australian citizen? Even permanent residents can now buy a house & land package with just a 5% deposit.

Single parent scheme also available.

The Australian Government has introduced the First Home Guarantee Scheme to help first-time buyers get onto the property ladder with a deposit as low as 5%. The scheme was launched in 2019 and was originally called the First Home Loan Deposit Scheme, but it was renamed in 2022 to include all the different schemes available to first home buyers. The National Housing Finance and Investment Corporation (NHFIC) administers the scheme, and it guarantees up to 15% of the value of the property that is financed by a participating lender.

The scheme has just been expanded to allow family members or friends to access it, and the eligibility criteria have been widened to include single legal guardians of children, such as aunts, uncles, and grandparents. All three schemes (First Home Guarantee, Regional First Home Guarantee, and Family Home Guarantee) are now available to permanent residents, as well as Australian citizens.

To take advantage of the scheme, the value of the residential property must not exceed the price caps set by the government in your state or regional area. Buyers must also become owner-occupiers and buy a residential property. Investment properties are excluded from the scheme.

Previously, only couples were eligible for the scheme, but from July 1, other people buying together, including siblings or friends, will be eligible. Single applicants with a taxable income of up to $125,000 per annum for the previous financial year are eligible, whereas the total income for a couple is $200,000 per annum. The Family Home Guarantee provides support specifically for single parents, and there are now 10,000 Family Home Guarantees available for eligible single parents with at least one dependent child who have a deposit of as little as 2%.

The scheme has been designed to allow eligible borrowers to use it in conjunction with other government programs, like the First Home Super Saver Scheme or state and territory first homeowner grants and stamp duty concessions. However, it's essential to note that the guarantee is not a cash payment or a deposit for your home loan.