The Home Guarantee Scheme (“the scheme”) is a government initiative designed to assist eligible home buyers—primarily first home buyers and single parents—in purchasing a home with a reduced deposit requirement. The scheme operates in conjunction with federal programs administered by the National Housing Finance and Investment Corporation (NHFIC), such as the First Home Guarantee, Regional First Home Buyer Guarantee, and Family Home Guarantee.
Key Features of the scheme include;
- Reduced Deposit Requirement:
Eligible buyers can purchase a home with as little as a 5% deposit (or 2% for single parents under the Family Home Guarantee), with the government providing a guarantee for up to 15% (or 18%) of the property’s value. - No Lenders Mortgage Insurance (LMI):
The government guarantee allows buyers to avoid paying LMI, which is usually required when the deposit is less than 20%. - Eligibility Criteria:
Applicants must be Australian citizens or permanent residents, meet income and property price caps, and (for most schemes) be first home buyers or single parents. - Property Types:
The scheme covers a range of residential properties, including new and existing homes, subject to price thresholds that vary by location. - Application Process:
Applications are made through participating lenders, who assess eligibility and facilitate the government guarantee.
From 1 October 2025 changes will be made to the scheme to remove place limits, income caps, and an increase to the property price cap to allow the scheme to be accessible to more people.
If you or someone you know is a first home buyer and want to know more about the scheme, contact one of our experienced Property Law solicitors today on 02 4627 3333.
This article was published on 11/02/26 and the information is valid as at the date of publishing. This article is general in nature and is not and should not be considered or relied on as legal advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.