Eligibility Criteria for the First Home Guarantee
To be eligible for the First Home Guarantee (FHG), prospective home buyers must meet the following criteria:
Individual Application: Applicants must apply for the FHG individually.
Single Parent or Legal Guardian: Applicants must be either a single parent or a single legal guardian of at least one dependent.
Citizenship or Permanent Residency: Applicants must be Australian citizens or permanent residents at the time of entering the loan.
Age Requirement: Applicants must be at least 18 years of age.
Income Limit: Applicants must earn no more than $125,000 per year.
Intended Owner-Occupier: Applicants must intend to occupy the purchased property as their primary residence.
Non-Ownership Clause: Applicants must not currently own property, or if they do, they must not intend to own a separate property upon settlement of the guaranteed property they are purchasing.
Eligible Single Parent or Legal Guardian:
To qualify for the FHG under the category of a single parent or legal guardian, applicants must meet the following criteria:
Single Status: Applicants must be single, meaning they do not have a spouse or de facto partner. Note that separated individuals who are not divorced are not considered single.
Dependent Requirement: Applicants must have at least one dependent, who can be either a "dependent child" as defined by the Social Security Act 1991 or a person in receipt of a disability support pension under the same act who resides with the applicant.
Legal Responsibility: Applicants must demonstrate legal responsibility for the day-to-day care, welfare, and development of the dependent, who must be in their care.
Previous Home Ownership:
FHG applicants can be either first home buyers or previous homeowners who do not intend to own a separate property upon settlement of the guaranteed property they are purchasing.
Deposit Requirement:
Prospective home buyers applying for the FHG must have a deposit ranging from 2% to 20% of the value of an eligible property. The minimum deposit required is 2%, but Participating Lenders may request a higher percentage based on individual financial circumstances.
Home buyers should consult with a Participating Lender to determine whether their deposit constitutes genuine savings according to lending criteria and the FHG guidelines. Additionally, home buyers should confirm with their lender whether any cash grants received from other Australian Government, State, or Territory schemes can be considered part of their genuine savings.
Applicants are responsible for covering all costs and repayments associated with home loans under the Home Guarantee Scheme, including, but not limited to, stamp duty, application fees, and legal costs. They are encouraged to contact a participating lender for further information and to discuss individual circumstances.