The Scheme That’s Helped Thousands of Australians Buy Their First Home
If you’re looking to buy your first home, there’s one scheme that could get you there sooner—the Home Guarantee Scheme (HGS). It’s helped nearly 200,000 Aussies break into the property market since 2020 by making home ownership more accessible. Here’s how it works.
Saving a 20% deposit for a first home is tough—especially with the cost of living pressures right now. According to CoreLogic, it now takes an average of 10.6 years to save that deposit.
But with the HGS, you might be able to buy with just a 5% deposit—and without paying lenders mortgage insurance (LMI).
How the Home Guarantee Scheme works
Rather than giving first-home buyers a cash grant (like the First Home Owner Grant), the HGS helps by having the federal government guarantee part of your home loan.
This gives you two major benefits:
You can take out a home loan with just a 5% deposit.
You avoid paying LMI, which can save you thousands.
Three ways to qualify for the HGS The HGS is available through three different options:
First Home Guarantee – Helps eligible first-home buyers purchase a property with just a 5% deposit. There are 35,000 places available this financial year.
Regional First Home Buyer Guarantee – Supports first-home buyers purchasing in regional areas, with 10,000 spots available this financial year. If this suits your plans, it’s worth acting fast.
Family Home Guarantee – Designed for single parents, this scheme allows eligible applicants (even those who have previously owned a home) to buy with just a 2% deposit and no LMI. Only 5,000 places are available for 2024-25.
Why more first-home buyers are using the 5% deposit scheme
Just five years ago, only one in 10 first-home buyers took advantage of the HGS. Today, it’s closer to one in three.
Yes, rising property prices, higher interest rates, and cost of living pressures play a role. But the expansion of the scheme has also helped, now allowing friends, siblings, and family members to buy together. Plus, non-first-home buyers who haven’t owned property in Australia in the past 10 years can also apply.
The fine print
There are a few things to keep in mind:
You’ll need to meet eligibility criteria, including income limits and property price caps.
Not all lenders participate in the HGS, so options may be limited.
Ready to fast-track your homeownership journey?
If you’re keen to get into the market sooner, the 5% deposit scheme could be the leg-up you need. Get in touch, and we’ll help you check your eligibility and find the right lender to get you across the line.
Disclaimer: This article provides general information and should not be considered financial or tax advice. It does not take into account your personal circumstances. Always seek professional advice before making financial decisions. This content is protected by copyright laws and cannot be modified, reproduced, or republished without prior written consent.
