The First Home Guarantee (FHBG) (previously the First Home Loan Deposit Scheme) is a federal government initiative that helps eligible first home buyers purchase a home with a deposit as low as 5% without paying Lenders Mortgage Insurance (LMI). The government, through Housing Australia (formerly NHFIC), guarantees up to 15% of the property's value, allowing lenders to offer loans with only a 5% deposit.
How It Works
Under the FHBG, Housing Australia provides a guarantee to a participating lender for up to 15% of the property's value. This means you only need a 5% deposit and you won't have to pay LMI, potentially saving you tens of thousands of dollars.
Key Benefits
- Low deposit: Buy with as little as 5% deposit
- No LMI: Save $10,000–$30,000+ in Lenders Mortgage Insurance
- No ongoing fees: The guarantee doesn't charge you an ongoing fee
- Available for single applicants and joint applicants
Eligibility Criteria (2026)
| Requirement | Details |
|---|---|
| Citizenship | Australian citizen or permanent resident |
| Age | 18 years or older |
| Income cap (single) | $125,000 per annum (may vary by scheme year) |
| Income cap (couple) | $200,000 per annum combined |
| Property type | Existing house, townhouse, apartment, or house-and-land package |
| Occupancy | Must move in within 12 months — no investment properties |
| Prior property | Must not have owned property in Australia before |
Property Price Caps (2025–26)
Property price caps vary by location. Here are the caps for major cities and regions:
| Location | Price Cap |
|---|---|
| Sydney and regional centres (NSW) | $900,000 |
| Melbourne and regional centres (VIC) | $800,000 |
| Brisbane and major QLD centres | $700,000 |
| Perth (WA) | $600,000 |
| Adelaide (SA) | $600,000 |
| Hobart (TAS) | $600,000 |
| Canberra (ACT) | $750,000 |
| Darwin (NT) | $600,000 |
How to Apply
- Check your eligibility using the Housing Australia eligibility tool
- Find a participating lender (most major banks and many smaller lenders participate)
- Get pre-approval — your lender will assess your application and let you know if places are available
- Find a property within the price cap
- Complete your purchase with your 5% deposit — no LMI required
Places Available Per Year
The FHBG has a limited number of places each financial year (35,000 in 2025–26). Places can fill up quickly, particularly at the start of the financial year. Apply early to secure your spot.
Related Guides
- How to save a deposit faster
- First Home Owner Grant by state
- Help to Buy shared equity scheme
- Stamp duty concessions by state
This information is for general guidance only. Check the Housing Australia website for the most current eligibility criteria and price caps.