How It Works:
The FHBG allows eligible buyers to secure a home loan with as little as a 5% deposit, without the need to pay for Lenders Mortgage Insurance. Under this scheme, Housing Australia guarantees part of your home loan, which can be up to 15% of the property's assessed value. This isn’t a cash guarantee but rather a way to make borrowing easier and less expensive.
Available between July 1, 2024, and June 30, 2025, there are 35,000 spots up for grabs, so don't miss out!
Eligibility Criteria:
To be eligible for the FHBG, you need to:
Apply either individually or jointly.
Be an Australian citizen or permanent resident at the time of loan agreement.
Be at least 18 years old.
Have an income of $125,000 or less for individuals, or up to $200,000 for joint applicants, according to your ATO Notice of Assessment.
Plan to live in the home you’re purchasing.
Be a first home buyer, or someone who hasn’t owned real estate in Australia in the past ten years.
Use the handy Eligibility Tool to see if you qualify, and reach out to a Participating Lender for more detailed criteria and advice.
Deposit Details:
You'll need at least 5% of the property's value saved up as a deposit, though some lenders might ask for more based on your financial situation. It's a good idea to chat with your lender to make sure your deposit counts as genuine savings. They can also let you know if any other grants can contribute to your deposit.
Property Types:
Under the HGS, you can buy various property types, including:
An existing house, townhouse, or apartment.
A house and land package.
Land with a separate building contract.
An off-the-plan apartment or townhouse.
Check out the Property Price Cap Tool to see limits for your area, and remember that different property types might have specific rules.
How to Apply:
Applications for the HGS have to be made through a Participating Lender or their mortgage broker partners. Housing Australia doesn’t take applications directly, so it’s wise to work with a lender and perhaps also consult with financial and legal experts to ensure everything aligns with your goals and financial circumstances.
Important Documents:
Keep an eye on your Notice of Assessment (NOA) from the ATO because it’s key to proving your income eligibility. For applications made between July 2024 and June 2025, you'll need the 2023-2024 financial year NOA. If you're overseas or unable to provide this, talk to your lender about alternative documentation.
Whether you’re a newbie in the housing market or returning after a decade away, the FHBG can make the leap into home ownership more achievable. Don’t hesitate to explore this opportunity—a Participating Lender can help set you on the right path.