What is home guarantee scheme?
The HGS is a federal scheme where the Government guarantees up to 15% of an eligible buyer's loan, letting them buy with a 5% deposit and no LMI, covering first home buyers, regional buyers, single parents and key workers.
The Home Guarantee Scheme (HGS), administered by Housing Australia, lets eligible buyers purchase with as little as a 5% deposit (or 2% in some sub-schemes) without paying Lenders Mortgage Insurance. The Government underwrites the gap between the buyer's deposit and the standard 20%, it's a guarantee to the lender, not a cash payment to the buyer.
The scheme has four streams: First Home Guarantee (5% deposit, 35,000 places/year nationally), Regional First Home Buyer Guarantee (regional postcodes only), Family Home Guarantee (single parents, 2% deposit) and the Help to Buy scheme (shared equity, 2% deposit). Each has its own price caps that vary by state and metro/regional band.
Demand routinely outstrips supply each financial year. Eligibility check + a participating lender + a property under the price cap = qualifying. The price caps reset each July with the federal budget.
Also called
HGS · first home guarantee · 5% deposit scheme · Home Guarantee Scheme
Related
- First Home Owner Grant (FHOG): The FHOG is a one-off state-government grant for first home buyers buying or building a new (never-occupied) home, typic…
- Lenders Mortgage Insurance (LMI): LMI is a one-off premium that protects the lender (not the borrower) when the LVR is above 80%; typical cost on a $500,0…
- Loan-to-value ratio (LVR): LVR is the size of your home loan expressed as a percentage of the property's appraised value, so a $400,000 loan on a $…
- Family Home Guarantee (single parent): The Family Home Guarantee is a Home Guarantee Scheme stream specifically for eligible single parents and single legal gu…
- First Home Super Saver Scheme (FHSSS): FHSSS lets first home buyers contribute up to $15,000/year (max $50,000 total) of pre-tax salary into superannuation, th…
- Regional First Home Buyer Guarantee: The Regional First Home Buyer Guarantee is a Home Guarantee Scheme sub-stream specifically for first home buyers in regi…
General information only, not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.