The Definitive Guide for 2023

Supporting eligible home buyers to buy a home sooner.

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The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible home buyers to buy a home sooner. It is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.

Under the FHBG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by NHFIC. This enables an eligible home buyer to buy a home with as little as 5% deposit without paying Lenders Mortgage Insurance.

For the FHBG, any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan. Eligibility criteria apply.

From 1 July 2023 – 30 June 2024, 35,000 FHBG places are available.


Understanding the FHBG & How it Works

Eligibility Criteria 

To apply for the FHBG, home buyers must be:  

  • Applying as an individual or 2 joint applicants 
  • An Australian citizen(s) or permanent resident(s) at the time they enter the loan
  • At least 18 years of age
  • Earning up to $125,000 for individuals or $200,000 for joint applicants, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
  • Intending to be owner-occupiers of the purchased property
  • First home buyers or previous homeowners who haven’t owned a property in Australia in the past ten years.

Access the Eligibility Tool – a short questionnaire to help home buyers determine which Guarantee/s they may be eligible for. 

Contact a Participating Lender for more information, including the full list of eligibility criteria. 

Deposit Required

Home buyers applying for the FHBG need to have between 5% and 20% of the value of an eligible property saved as a deposit. The minimum deposit required for the FHBG is 5%, but Participating Lenders may require a higher percentage deposit based on individual financial circumstances. 
Home buyers should speak with a Participating Lender to find out whether a deposit is made up of genuine savings for the purposes of their lending criteria and the FHBG. 

Home buyers should confirm with their Participating Lender whether any cash grants received under other Australian Government, State or Territory schemes or programs can be considered as part of their genuine savings. 

Contact a Participating Lender for more information and to discuss individual circumstances. 

Property Types & Price Caps

Under the HGS, home buyers can buy a residential property, including: 

  • an existing house, townhouse or apartment 
  • a house and land package 
  • land and a separate contract to build a home 
  • an off-the-plan apartment or townhouse. 

Use the Property Price Cap Tool to look up the property price caps for each location. 

Specific timeframes and criteria apply to different property types. The contract of sale and (if applicable) eligible building contract may need to be executed by specific dates.

Contact a Participating Lender for more information, including the full list of property criteria. 

How to Apply

HGS applications can only be made with a Participating Lender or their authorised representative (a mortgage broker). NHFIC does not accept HGS applications or provide personal financial advice.

Home buyers (and those advising them) should consider consulting a Participating Lender and seeking independent financial and legal advice about whether a particular home loan or property, and the terms of the HGS suit personal circumstances and objectives.  

Before entering into a home loan agreement, home buyers should consider talking with their lender (or broker) about the potential implications of changing interest rates or house prices on individual circumstances.  

Participating Lenders

NHFIC has authorised a panel of 33 Participating Lenders to offer the HGS to home buyers.

Notice of Assessment (NOA)

The HGS includes an income test, which is assessed by lenders using a Notice of Assessment (NOA). 

Once a tax return has been processed, the Australian Taxation Office (ATO) sends a statement called the Notice of Assessment to the taxpayer’s myGov Inbox

For HGS reservations made from 1 July 2023 to 30 June 2024, the relevant Notice of Assessment is the 2022-2023 financial year. NHFIC advises applicants to speak to their Participating Lender to understand the risk of signing a Contract of Sale prior to obtaining the latest Notice of Assessment.

Don't Fit the Eligibility Criteria? What About the 1st Home Buyers Grant?

The first home owner grant gives eligible first-time home buyers $15,000 towards buying or building a new home in Queensland.

What about no deposit house and land packages in Hervey Bay?
In a nutshell, there are several ways to purchase a home in Australia without having to put down an initial deposit. These options include guarantor loans, using existing equity as a deposit, taking advantage of the First Home Loan Deposit Scheme (as mentioned), gifted deposits, using personal loans as home deposits, and even tapping into your superannuation for investment properties

Turnkey House and Land Packages for First Home Buyers

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