The First Home Guarantee (FHBG)

The First Home Guarantee, formerly known as the First Home Deposit Scheme, is a government initiative that helps first-time homebuyers purchase a property with just a 5% deposit, without the burden of paying Lenders’ Mortgage Insurance (LMI). Typically, LMI is required when borrowing over 80% of a property’s value, but with this scheme, the government acts as a guarantor, eliminating the need for LMI.


Income test 

Singles with a taxable income less than $125,000, couples less than $200,000 for the previous financial year. Please note when applying for a place in this scheme, you will need to provide the relevant Notice of Assessment from the ATO for the previous financial year. 


Joint applications 

Any two eligible people may apply together, including friends, siblings or other family members.


Prior Ownership

You must provide proof you have not owned or held interest in property in Australia in the past ten years. This includes commercial property, investment or company title properties.


The scheme is available to eligible borrowers who are Australian Permanent Residents.


Owner Occupied 

You need to move into the property within six months of owning your home and continue to live in that property for so long as your home loan has a guarantee under the Scheme.


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