Developed by the Australian Government and delivered by Housing Australia , the Scheme provides critical support to eligible home buyers who meet the income and other eligibility criteria, but don’t have the typical 20% deposit required to secure a loan. Housing Australia provides a ‘guarantee’ – a nominated % of the value of the loan - to the lender/financial institution which enables the home buyer to purchase without paying Lenders Mortgage Insurance (LMI).
Currently, there are three (3) Guarantees available:
- First Home Guarantee (FHBG), so buyers can start with a deposit as little as 5%
- Regional First Home Buyer Guarantee (RFHBG), supporting regional home buyers enter the market with a deposit as little as 5%
- Family Home Guarantee (FHG), providing single parents and single legal guardians a pathway to a new home, with a deposit as little as 2%.
How many spots are available in this scheme?
For the latest information on the Home Guarantee Scheme, either talk with your local MyChoice Home Loans consultant, or visit the Housing Australia website.
Who is eligible?
Home buyers must meet certain eligibility criteria for the HGS, and these differ slightly for each of the Guarantees.
Australian citizens and permanent residents who are at least 18 years of age are eligible to apply.
Individual and join applicants can be either first home buyers, or previous home owners who haven’t had a home loan for 10+ years. Joint applicants, including partners, friends, siblings, and other family members may apply, as long as the aforementioned eligibility applies.
Single natural or adoptive parents, or single legal guardians of at least one dependant are eligible to apply for the Family Home Guarantee (FHG).
What type of property can I buy?
Under the Home Guarantee Scheme, home buyers must purchase a residential property, much can include:
- a house and land package
- land and a separate contract to build a home
- an off-the-plan apartment or townhouse
- an existing house, townhouse or apartment
Are there property price thresholds to be eligible?
Yes. The property price must not exceed the relevant price caps for the area in which it is location. For more info visit NHFIC.
How do I apply?
Home Guarantee Scheme applications can only be made through a participating lender.
Before entering into a home loan agreement, home buyers should review the most up to date information relating to the full lise of eligibility criteria.
To discuss your individual circumstances and the options available to get you into your new home sooner, please contact our MyChoice Home Loan team and arrange a chat, either over the phone or in person at a time that suits you.
