From July 1st 2024, 50,000 new spots are now available for home buyers who need a smaller deposit through the three Home Guarantee Schemes.

The federal government’s Home Guarantee Scheme, which includes the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee, is now accepting applications for FY25 spots. This scheme, managed by Housing Australia, allows eligible buyers enter the property market sooner by providing them with the option of securing a mortgage with a low deposit without paying Lenders Mortgage Insurance (LMI).

Eligible buyers can apply for a loan with as little as a 5% deposit for the First Home Guarantee or the Regional First Home Buyer Guarantee, and a 2% deposit for the Family Home Guarantee. The government then guarantees the remaining amount.

Starting July 1, the available spots are:

• 35,000 for the First Home Guarantee (FHBG)
• 10,000 for the Regional First Home Buyer Guarantee (RFHBG) until June 30, 2025
• 5,000 for the Family Home Guarantee (FHG) until June 30, 2025

Since January 2020, over 160,000 Australians have bought or built homes with the scheme’s help. The scheme’s share of the first home buyer market has grown significantly, with almost one in three first home buyers in 2022-23 using it, compared to one in seven in 2021-22.

With the popularity of these schemes in mind, the government expanded the criteria last year to allow more buyers to apply. This included allowing friends, siblings and other family members to apply, opening up the First Home Guarantee to non-first home buyers who haven’t owned property in Australia in the past 10 years and enabling legal guardians to access the Family Home Guarantee.

Wondering whether these schemes could apply to you? Get in touch with our team today to find out what schemes and incentives you could take advantage of to make your home buying dreams a reality.