Home Guarantee Scheme (HGS)
The Home Guarantee Scheme (HGS) is an Australian Commonwealth Government initiative to support eligible homebuyers to buy property by providing a 'guarantee' on the participant’s loan to ensure their deposit is lower. HGS participants do not pay Lenders Mortgage Insurance (LMI).
What assistance is available?
There are three types of Home Guarantee Streams, each with different deposit requirements and specific eligibility criteria.
These three streams are:
- First Home Guarantee (FHBG): minimum 5% deposit, must be a first homebuyer or haven’t owned property in the last 10 years.
- Regional First Home Buyer Guarantee (RFHBG): 5% minimum deposit, must have lived in regional area for at least 12 months prior to purchasing a property through the scheme.
- Family Home Guarantee (FHG): 2% minimum deposit, must be a single parent or single legal guardian who do not currently own property.
The HGS is not a shared equity scheme, as in you do not have to repay a Government share, nor is it an upfront cash grant.
After providing a deposit, participants of the HGS must obtain a loan from one of the 33 Participating Lenders.
Under the Home Guarantee Scheme, participants can choose to buy:
- 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
Source: Housing Australia, preproduced with permission. Current as at July 2024.
Am I eligible?
Participants of the HGS must meet certain eligibility criteria for both the program and for each HGS product. You can use the eligibility tool via Housing Australia to find out more. There are also property price caps and location restrictions.
How can I apply?
HGS applications can only be made with a participating lender or on their behalf through a mortgage broker. To see the list of available lenders, follow this link. Housing Australia does not accept HGS applications directly or provide personal financial advice.
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