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 — covers 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.
HGS · first home guarantee · 5% deposit scheme · Home Guarantee Scheme
- 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 — a $400,000 loan on a $50…
General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.