Home Guarantee Scheme Australia — All Three Guarantees Explained (2026)
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Home Guarantee Scheme Australia — All Three Guarantees Explained (2026)
The Australian Government’s Home Guarantee Scheme is an umbrella program comprising three separate guarantees administered by Housing Australia (formerly the NHFIC). Each guarantee allows eligible buyers to purchase a home with a low deposit without paying Lenders Mortgage Insurance (LMI).
The scheme works by having the government guarantee the portion of the loan between the deposit and 20% of the property value — in effect, acting as a guarantor for LMI purposes without any cost to the buyer.
The Three Guarantees at a Glance
| Guarantee | Who It’s For | Min Deposit | Annual Places |
|---|---|---|---|
| First Home Guarantee (FHBG) | First home buyers (singles and couples) | 5% | 35,000 |
| Regional First Home Buyer Guarantee (RFHBG) | First home buyers in regional areas | 5% | 10,000 |
| Family Home Guarantee (FHG) | Single parents/legal guardians (not just first home buyers) | 2% | 5,000 |
Places are released each financial year (July 1 – June 30) and are limited. Once exhausted, new allocations open the following year.
First Home Guarantee (FHBG)
The First Home Guarantee (formerly the First Home Loan Deposit Scheme or FHLDS) is the flagship scheme for first home buyers.
Key features:
- Minimum 5% deposit required
- No LMI payable (government guarantees the lender for the shortfall to 20%)
- Available to first home buyers who have not previously owned or had an interest in residential property in Australia
Income caps:
- Singles: $125,000 gross taxable income (previous financial year)
- Joint applicants: $200,000 combined gross taxable income
Property price caps (April 2026):
| State / Territory | Price Cap |
|---|---|
| NSW | $900,000 |
| VIC | $800,000 |
| QLD | $700,000 |
| WA | $600,000 |
| SA | $600,000 |
| TAS | $600,000 |
| ACT | $750,000 |
| NT | $600,000 |
Eligible property types: New homes, off-the-plan, house and land, and established homes.
Participating lenders: The scheme is offered through a panel of approved lenders including major banks and non-bank lenders. Compare lender rates within the scheme — rates can differ.
See the First Home Guarantee full guide for detailed eligibility criteria and application process.
Regional First Home Buyer Guarantee (RFHBG)
The Regional First Home Buyer Guarantee applies the same 5% deposit / no LMI benefit specifically to buyers in regional Australia.
What counts as “regional”?
- Properties outside the capital city of each state and territory
- Also includes some outer ring areas of cities classed as regional (varies by state)
- The full list of eligible postcodes is published by Housing Australia
Key difference from FHBG:
- Applicants must have lived in the regional area they’re buying in (or adjacent area) for at least 12 months preceding the application
- The same income caps apply ($125,000 single / $200,000 joint)
- Property price caps are the same as the FHBG by state
Why use RFHBG instead of FHBG? In high-demand periods, FHBG places may be exhausted while RFHBG places remain. Regional buyers should apply under the RFHBG to maximise their chance of accessing a scheme place.
See Regional First Home Buyer Guarantee guide for postcode lists and detailed guidance.
Family Home Guarantee (FHG)
The Family Home Guarantee is distinct from the other two — it is not limited to first home buyers and requires only a 2% deposit.
Who is eligible:
- Single parents or single legal guardians with at least one dependent child
- Does not need to be a first home buyer (previous homeowners may qualify if they don’t currently own property)
- Must be an Australian citizen aged 18 or over
Income cap: $125,000 gross taxable income (single applicant only — couples are not eligible)
Property price caps: Same as the First Home Guarantee by state (NSW $900,000, VIC $800,000, etc.)
Key benefits:
- Only 2% deposit required — government guarantees the lender for the shortfall to 20%
- No LMI payable
- Particularly valuable for single parents who may have reduced savings capacity and interrupted employment history
See Family Home Guarantee guide for a full breakdown.
How Do the Guarantees Work?
The government does not provide any cash — it guarantees the lender for the portion above the deposit up to 20% of the property value. If the buyer defaults, the government covers the shortfall that LMI would otherwise have covered.
Example — First Home Guarantee on a $700,000 property:
- Purchase price: $700,000
- Deposit: $35,000 (5%)
- Loan: $665,000
- LVR: 95%
- Government guarantee covers: the portion above 80% LVR ($140,000 threshold) — so $105,000 is guaranteed
- LMI payable by buyer: $0
Without the scheme, LMI on a 95% LVR $700,000 loan would typically cost $20,000–$35,000.
Can You Combine Schemes?
The three guarantees cannot be used simultaneously. However:
- The FHBG/RFHBG/FHG can be combined with the First Home Owner Grant (FHOG) — a QLD first home buyer could access $30,000 FHOG + First Home Guarantee simultaneously
- The FHBG can be combined with FHSS scheme funds used as the deposit
- State-based stamp duty exemptions apply independently of the federal guarantees
Participating Lenders
The Home Guarantee Scheme is available through an approved panel of lenders. Not all lenders participate, and rates differ within the panel. First home buyers should compare rates from multiple panel lenders — a mortgage broker can assist with this comparison.
A list of participating lenders is available at Housing Australia’s website.
Frequently Asked Questions
How many Home Guarantee Scheme places are available in 2026? The federal government allocates 35,000 places per year for the First Home Guarantee, 10,000 for the Regional FHBG and 5,000 for the Family Home Guarantee. Places open at the start of each financial year (July 1) and fill progressively. In recent years, FHBG places have been exhausted before the end of the financial year.
Can I use the Home Guarantee Scheme to buy an investment property? No. All three guarantees require you to occupy the property as your principal place of residence. Purchasing an investment property under the scheme is not permitted.
What happens if I sell the property bought under the scheme? When you sell, the guarantee ends. There is no obligation to repay the government — the guarantee simply terminates. You do not give the government a share of any capital gain.
Is the Home Guarantee Scheme worth it? For eligible buyers, the scheme’s no-LMI benefit is worth $10,000–$40,000+ depending on loan size — essentially free money saved in insurance premiums. The trade-off is a higher LVR loan (more debt) and fewer participating lenders to choose from. For most eligible buyers, the benefit substantially outweighs the constraints.
Related Guides
- First Home Guarantee (FHBG) — Detailed Guide
- Regional First Home Buyer Guarantee
- Family Home Guarantee
- Scheme Comparison Table — All Federal and State Schemes
- First Home Buyer Hub
This article provides general information only. Scheme eligibility, income caps and property price caps are subject to change by the Australian Government. Always verify current details at housingaustralia.gov.au. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.