Home Guarantee Scheme (HGS): Full Breakdown of Government Support
Christian Stevens, Mortgage Broker
Published January 31, 2025, 2:10 p.m ET
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🔑 Key Facts
- The Home Guarantee Scheme (HGS) is an umbrella term for several government programs helping Australians buy a home with a smaller deposit.
- It includes the First Home Guarantee (FHBG), Family Home Guarantee (FHG), and Regional First Home Buyer Guarantee (RFHBG).
- These schemes reduce or eliminate the need for Lenders Mortgage Insurance (LMI), saving buyers thousands.
- Each program has its own eligibility criteria, price caps, and deposit requirements.
- Flint helps you navigate the right scheme and lender options to maximise your success.
What Is the Home Guarantee Scheme?
The HGS is a federal government initiative delivered by Housing Australia to help eligible Australians buy a home sooner.
It supports buyers who don’t have a 20% deposit by acting as a guarantor on part of the loan — which removes the need for costly LMI and opens the door to faster approvals.
There are three core schemes under the HGS:
- First Home Guarantee (FHBG) – For eligible first home buyers with a 5% deposit
- Family Home Guarantee (FHG) – For single parents with a 2% deposit
- Regional First Home Buyer Guarantee (RFHBG) – For first-time buyers purchasing in regional areas with a 5% deposit
What Do These Schemes Help With?
- Lower deposit thresholds: As little as 2–5% deposit
- No LMI required: Saving buyers up to $15,000–$30,000
- Wider lender access: Available through a panel of approved lenders
Full ownership retained: The government does not own any share of your property
Who Is Eligible?
While each scheme has its own criteria, common requirements include:
- Australian citizenship, aged 18+
- First home buyer status (except FHG, which includes previous owners)
- Income under $125,000 (single) or $200,000 (couple)
- Owner-occupier intentions (not for investment)
Property Price Caps by Scheme
Each scheme includes maximum property value limits depending on your location. These vary by state and whether you’re buying metro or regional:
- NSW Metro: $900,000
- VIC Metro: $800,000
- Regional: $500,000–$750,000 (scheme-dependent)
Check Housing Australia’s postcode lookup tool or talk to Flint for specific thresholds in your area.
Application Process
- Check your eligibility
- Find a lender participating in the scheme (Flint can assist)
- Submit documents and get pre-approved
- Select a property within the scheme’s limits
- Complete settlement and move in within 6–12 months
Things to Keep in Mind
- Scheme places are limited: FHBG (35,000), RFHBG (10,000), FHG (5,000)
- Lenders apply their own policies: You still need to meet standard serviceability and credit checks
- Property type and residency rules apply: Must be an owner-occupied purchase, not for investment
📞 Unsure Which Guarantee Scheme You Qualify For?
At Flint, we make navigating the Home Guarantee Scheme easy:
- Identify which HGS pathway fits your situation
- Help you apply through an approved lender
- Structure your deposit and loan for maximum success
Talk to Flint today and let’s find the right government-backed path to owning your first (or next) home — faster and smarter.
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