For first-time home buyers across Australia, several national government schemes and grants are designed to make homeownership more accessible.
These programs offer financial support to help overcome common hurdles such as high property prices and large deposit requirements. Key initiatives include the Family Home Guarantee, aimed at supporting single parents, the Regional Home Guarantee for those purchasing in regional areas, and the New Home Guarantee, which is focused on newly built homes. These schemes provide financial assistance while also giving buyers access to a range of home loan products through partnerships with various lenders, making it easier to secure your first home.
| First Home Guarantee | Family Home Guarantee | Regional Home Guarantee | |
| Acronym | FHBG (previously FHLDS) | FHG | RFHBG |
| Region | Australia wide | Australia wide | Australia wide |
| Location | Metro or regional | Metro or regional | Regional only |
| Description | The First Home Guarantee allows eligible buyers to purchase a home with a deposit as low as 5%, without the need for Lenders Mortgage Insurance (LMI). | The Family Home Guarantee supports single parents with at least one dependent, enabling them to buy a home with just a 2% deposit and no LMI. | The Regional Home Guarantee helps eligible buyers secure a home in a regional area with a minimum 5% deposit, without requiring LMI. |
| Property type | New and existing | New and existing | New and existing |
| Minimum deposit | 5% | 2% | 5% |
| Property value limit | $400,000 to $900,000 depending on location | $400,000 to $900,000 depending on location | $400,000 to $900,000 depending on location |
| Owner occupied or investment | Owner occupied only | Owner occupied only | Owner occupied only |
| Number of places for FY24 | 35,000 | 5,000 | 10,000 |
| Income limit | Income limit of up to $125,000 for individuals or $200,000 for joint applicants. | Eligible for individuals earning up to $125,000. | Available to individuals earning up to $125,000 or joint applicants with a combined income of up to $200,000. |
| Borrower eligibility | Single and couple applicants | Single parent with at least one dependent child | Single and couple applicants |
| Purchasing history | Must be first home buyers | First home buyer or previous homeowner | First home buyer or previous homeowner |
| Requirements for living in the property | First Home Buyers must occupy the property within six months of settlement or, if building, within six months of receiving the occupancy certificate. | First Home Buyers must occupy the property within six months of settlement or, if building, within six months of receiving the occupancy certificate. | First Home Buyers must occupy the property within six months of settlement or, if building, within six months of receiving the occupancy certificate. |
| Link to more information | Housing Australia | Housing Australia | Housing Australia |
State-specific government schemes
In addition to the national grants and programs, each state offers specific schemes for first-time buyers. These can be used alongside national benefits, and depending on the property’s location, you may qualify for further exemptions and concessions. To explore state-specific government schemes, click on your relevant state:
- Victoria and Tasmania grants and schemes
- Queensland grants and concessions
- New South Wales grants and schemes
- South Australia grants and schemes
- Western Australia grants and schemes
- Northern Territory grants and schemes
UFinancial’s role in helping you access first home buyer grants and schemes
At UFinancial, we specialise in helping first home buyers navigate the available government schemes and grants. Our team provides clear guidance, ensuring you understand eligibility requirements and complete all the necessary paperwork. We’re here to simplify the process and help you make informed decisions, ultimately bringing you closer to homeownership.
First home guarantee (FHBG)
The first home guarantee (FHBG), formerly known as the first home loan deposit Scheme (FHLDS), allows first-time buyers to secure a home with a deposit as low as 5%, without having to pay for lenders mortgage insurance (LMI). There are 35,000 spots available in the 2023-24 financial year, and applicants must secure a loan through a participating lender approved by Housing Australia, which can be arranged via UFinancial’s mortgage broker services. For further details, visit Housing Australia’s First Home Guarantee page.
Family home guarantee (FHG)
The family home guarantee (FHG) supports single parents with at least one dependent child, allowing them to buy a home with a 2% deposit, without LMI. This guarantee is available for both first-time buyers and those who previously owned a home but are currently renting. Property values range from $400,000 to $900,000, depending on the location. For more information, visit the Housing Australia’s Family Home Guarantee page.
Regional home guarantee (RFHBG)
The regional home guarantee (RFHBG) assists homebuyers who wish to purchase in regional areas. It is available to first-time buyers and those who have previously owned a home but are currently renting. With a 5% deposit and no LMI, this scheme is ideal for those looking to settle in regional locations. For eligibility details and further information, visit Housing Australia’s Regional Home Guarantee page.
UFinancial’s full support for first home buyers
At UFinancial, we understand that buying your first home is an exciting, yet complex journey. Our mortgage brokers will guide you every step of the way, ensuring you make the most of the government grants and schemes available. Here’s how we help:
- Expert guidance: From determining your eligibility to handling all necessary documentation, we make sure you don’t miss any crucial steps.
- Access to multiple lenders: We work with over 40 lenders to find the best loan options for your needs, ensuring you get the best deal possible.
- No-cost services for first home buyers: Our services are free for first home buyers, as we’re compensated by the lender you choose. This means you get expert advice at no extra cost.
- Comprehensive buyer support: We offer personalised assistance with property searches, property evaluations, and advice throughout the buying process, ensuring you feel supported every step of the way.
Ready to get started?
If you’re ready to take the next step toward homeownership, or if you need help navigating the First Home Buyer Grants and Schemes, contact a UFinancial team member today to find out how we can assist you in securing the right home loan for your first home purchase.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent. Content developed in partnership with IFPA.
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