The Home Guarantee Scheme (HGS)
The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers to purchase a home sooner. The Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.
The HGS includes:
- The First Home Guarantee (FHBG) – to support eligible first home buyers to buy their first home sooner, with a deposit as little as 5%. 35,000 places are available each financial year
- The Regional First Home Buyer Guarantee (RFHBG) - to support eligible regional first home buyers to buy a home in a regional area. From 1 October 2022, 10,000 places are available each financial year to 30 June 2025
- The Family Home Guarantee (FHG) – to support eligible single parents with at least one dependent child to buy a home, with a deposit as little as 2%. 5,000 places are available each financial year to 30 June 2025.
The New Home Guarantee (NHG) is no longer available. A NHG place reserved on, or before 30 June 2022, will still be able to progress to settlement, subject to meeting eligibility criteria and NHG requirements and timelines.
The Australian Government has announced that it will expand the eligibility criteria of the Home Guarantee Scheme, effective 1 July 2023. The changes announced by the Government are not yet effective and will require amendment to the NHFIC Act and NHFIC’s Investment Mandate.
A link to the Minister’s media release has been published on the NHFIC website here.
How the HGS works
Under the HGS, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by NHFIC. This enables an eligible home buyer to purchase a home with a deposit between 2-5% (depending on which Guarantee they obtain) without paying Lenders Mortgage Insurance. The Guarantee is not a cash payment or a deposit for a home loan.
NHFIC has authorised a panel of 32 Participating Lenders to offer the HGS to home buyers.
The key features of the three Guarantees are outlined in the HGS Comparison Table below. This information is provided as a guide for home buyers and does not confirm that a home buyer will secure a Guarantee or loan from a Participating Lender.
HGS Comparison Table
| First Home Guarantee (FHBG) | Regional First Home Buyer Guarantee (RFHBG) | Family Home Guarantee (FHG) | |
|---|---|---|---|
| Places FY2022-23 | 35,000 places | 10,000 places | 5,000 places |
| Minimum deposit | 5% | 5% | 2% |
| Borrower eligibility | Single and couple(1) applicants | Single and couple(1) applicants Must have lived in the regional area(2) or adjacent regional area they are purchasing in for the preceding 12-month period to the date they execute the home loan agreement. Australian Defence Force members may be partially exempt(3) | Single parent with at least one dependent child |
| Purchasing history | First home buyers | First home buyers | First home buyers or previous home owners(4) |
| Property type | New and existing homes(5) | New and existing homes(5) | New and existing homes(5) |
| Purchase location | All Australia | Regional areas only(2) | All Australia |
| Property price caps | Same for all Guarantees | ||
(1) Couples are only eligible if they are married or in a de-facto relationship. Other persons buying together, including siblings, parent/child or friends, are not eligible.
(2) A regional area is defined by the Australian Bureau of Statistics as an Australian Statistical Geography Standard 2016 Statistical Area Level 4 (ASGS SA4 2016). These areas are based on population density and labour markets and vary in size reflecting these criteria. The greater capital city areas of each state and the Northern Territory; and the entire Australian Capital Territory are excluded from the RFHBG.
(3) Australian Defence Force member applicants may be eligible for a partial exemption and should check with their Participating Lender if this applies.
(4) Applicants can be either first home buyers or previous owners who do not currently own a home. An applicant must not currently have a freehold interest in real property in Australia, a lease of land in Australia or a company title interest in land in Australia.
(5) For a property to be eligible it must be a 'residential property' - this term has a particular meaning under the Home Guarantee Scheme. Contact a Participating Lender for more information or to discuss personal circumstances.
More information
Find out what information you might need to know before applying.
Eligibility criteria
Home buyers must meet certain eligibility criteria for the HGS, and these differ slightly for each of the Guarantees.
Access the Eligibility Tool – a short questionnaire to help home buyers identify which Guarantee/s they may be eligible for.
To view the eligibility criteria for each Guarantee, visit:
Contact a Participating Lender for more information, including the full list of eligibility criteria.
Property types and price caps
Under the HGS, home buyers can purchase a residential property, including:
- an existing house, townhouse or apartment
- a house and land package
- land and a separate contract to build a home
- an off-the-plan apartment or townhouse.
Use the Property Price Cap Tool to look up the property price caps for each location.
Specific timeframes and criteria apply to the different property types. The contract of sale and (if applicable) eligible building contract may have to be executed by specific dates.
Contact a Participating Lender for more information, including the full list of property criteria.
How to apply
Applications can only be made with a Participating Lender or their authorised representative (a mortgage broker). NHFIC does not accept applications for the HGS or provide personal financial advice.
Home buyers (and those advising them) should consider consulting with a Participating Lender, and seeking independent financial and legal advice about whether a particular home loan or property, and the terms of the HGS suit personal circumstances and objectives.
Before entering into a home loan agreement, home buyers should consider talking with their lender (or broker) about the potential implications of changing interest rates or house prices on individual circumstances.
Participating Lenders
NHFIC has authorised a panel of 32 Participating Lenders to offer the HGS to home buyers.
Tools to help you apply
NHFIC offers several tools to help home buyers.
Check your eligibility
The Eligibility Tool is a short questionnaire to help home buyers identify which Guarantee/s they may be eligible for.
Use our property price cap tool
The postcode search tool helps home buyers determine the property price caps for the suburb they are purchasing in.
Tools and resources
Home buyers can access a range of online tools and documents in Tools and Resources.
Need some help?
Questions or queries
Please contact a Participating Lender if you have questions or would like to apply for a Scheme place. NHFIC does not accept, assess, approve or maintain waitlists for any Scheme place applications.
If your question is not resolved, contact NHFIC.
Frequently Asked Questions
Search our Frequently Asked Questions database for general information about the Home Guarantee Scheme.