First Home Guarantee Expanded: 50,000 Places Now Available
The federal government has expanded the First Home Guarantee scheme. Here's who qualifies and how to apply.
Raj Bhangu
Principal Mortgage Broker
Key Takeaways
- 1First Home Guarantee expanded to 50,000 places annually (up from 35,000)
- 2Buy with 5% deposit and avoid LMI - government guarantees remaining 15%
- 3Income caps: $125,000 singles, $200,000 couples; must be Australian citizen/PR
- 4Example: Save ~$28,000 in LMI on a $700,000 property with 5% deposit
Great news for first home buyers: the First Home Guarantee scheme has been expanded to 50,000 places annually, up from 35,000.
What is the First Home Guarantee?
The scheme allows eligible first home buyers to purchase with just a 5% deposit without paying Lenders Mortgage Insurance (LMI). The government guarantees up to 15% of the loan.
Eligibility Requirements
- Income cap: $125,000 for singles, $200,000 for couples
- First home buyer: Never owned property in Australia before
- Australian citizen or permanent resident
- At least 18 years old
- Intend to live in the property
Property Price Caps (2025-26)
| Location | Price Cap |
|---|---|
| Sydney | $900,000 |
| Melbourne | $800,000 |
| Brisbane | $700,000 |
| Regional areas | $550,000-$650,000 |
Example: The LMI Savings
On a $700,000 property with 5% deposit ($35,000):
- Without the scheme: You'd pay ~$28,000 in LMI
- With the scheme: $0 LMI
- Your savings: $28,000
How to Apply
You can't apply directly to the government. Instead, you apply through a participating lender or mortgage broker. We can help you:
- Check your eligibility
- Access participating lenders
- Lodge your application
Spots fill fast. Contact us today to secure your place in the scheme.
Sources & References
This article references information from the following authoritative sources:
Raj Bhangu
Principal Mortgage Broker
Expert mortgage broker helping Australians achieve their property dreams with personalized home loan solutions.
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