First Home Guarantee Scheme
The First Home Guarantee (FHBG) is a federal scheme that helps eligible Australians buy their first home sooner — with as little as a 5% deposit and no Lenders Mortgage Insurance.
5% deposit
Buy with as little as 5% deposit instead of the usual 20%.
No LMI
The government guarantee replaces Lenders Mortgage Insurance — saving you thousands.
No income caps
Since the 2025 expansion your income no longer affects eligibility — price caps apply by state.
How the First Home Guarantee works
Normally, if you borrow more than 80% of a property's value you pay Lenders Mortgage Insurance (LMI). Under the First Home Guarantee, the government guarantees up to 15% of the property value, so your lender treats your loan as if you had a 20% deposit. You only need to save 5% — and you avoid LMI entirely.
Updated for 2025
The scheme was expanded in 2025. Income caps have been removed, so your salary no longer affects eligibility, and the property price caps were lifted. The main limit now is the price cap for where you're buying.
Check your state's price cap
Your purchase price must be at or below the cap for the property's location. Pick your state to see the cap and eligibility instantly.
5% of the purchase price — e.g. $75,000 on a $1,500,000 home, with the government guarantee covering LMI.
- No income caps — your earnings don't affect eligibility.
- Owner-occupiers who are Australian citizens or permanent residents, 18+.
- Purchase price must be at or below the cap shown above.
Estimates only. Caps are set by the Australian Government and reviewed periodically — confirm your eligibility and the current cap with a broker.
All states at a glance
| State / Territory | Capital & major centres | Rest of state |
|---|---|---|
| NSW | $1,500,000 Sydney & major regional centres | $800,000 Rest of state |
| VIC | $950,000 Melbourne & Geelong | $650,000 Rest of state |
| QLD | $1,000,000 Brisbane, Gold Coast & Sunshine Coast | $700,000 Rest of state |
| WA | $850,000 Perth | $600,000 Rest of state |
| SA | $900,000 Adelaide | $500,000 Rest of state |
| TAS | $700,000 Hobart | $550,000 Rest of state |
| ACT | $1,000,000 Canberra (whole territory) | — |
| NT | $600,000 Darwin (whole territory) | — |
Eligibility at a glance
- Australian citizen or permanent resident, aged 18 or over.
- Buying as an owner-occupier (not an investment property).
- A first home buyer, or haven't owned property in Australia recently.
- No income test — your earnings no longer affect eligibility.
- Purchase price within the cap for your city or region.
Caps and rules are set by the Australian Government and change over time. This is general information only — confirm your eligibility with a broker.
First Home Guarantee FAQs
Want to use the First Home Guarantee?
Book a free 15-minute chat. We'll check your eligibility, match you to a participating lender and map your next steps.