First Home Guarantee (FHBG)

With as little as 5% deposit, eligible home buyers have the opportunity to purchase a property through the First Home Guarantee (FHBG).

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Information for first home buyers.

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What is the First Home Guarantee?

The First Home Guarantee (FHBG) is an Australian Government initiative to support eligible home buyers purchase their home sooner. It is administered by Housing Australia under the Home Guarantee Scheme (Scheme) on behalf of the Australian Government.

Usually home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the First Home Guarantee, eligible home buyers can purchase a modest home with a deposit of as little as 5 per cent (lenders criteria apply). This is because Housing Australia guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible home buyer’s home loan.

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Bare Essentials Special.

The Bare Essentials Special variable rate (P&I) home loan $0 application fee | New money only | $250k minimum | Owner occupied P&I home loan
6.14%p.a. Variable interest rate
6.19%p.a. Comparison rate *

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The Works Package Variable Home Loan

The Works Package variable rate (P&I) home loan For owner occupied P&I home loans
6.34%p.a. Variable interest rate
6.78%p.a. Comparison rate *

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Refer to the Fees and Charges for more information.

who is eligible to apply?

  1. Australian citizens or permanent residents who are at least 18 years of age.
  2. Single applicants with a taxable income of up to $125,000 per annum for the previous financial year and couples with a taxable income of up to $200,000 per annum for the previous financial year, as shown on the Notice of Assessment (issued by the Australian Taxation Office). For all FHBG applications made from 1 July 2023 to 30 June 2024, the relevant financial year assessed will be 2022-23.
  3. Individual or joint applicants may apply for the First Home Guarantee. Joint applicants may include partners, friends, siblings, and other family members.
  4. The First Home Guarantee assists single (individual) and joint (together) applicants who have at least 5 per cent of the value of an eligible property saved as a deposit. If 20 per cent or more is saved, then the home loan will not be covered by the First Home Guarantee.
  5. To be eligible, home buyers applying for the FHBG must have a minimum 5% deposit, and can include first home buyers or previous home owners who haven’t owned a property in the ten years prior to the date they execute their home loan.
  6. Prior property ownership includes a freehold interest in real property in Australia (this includes owning land only), an interest in a lease of land in Australia with a term of 50 years or more, or a company title interest in land in Australia.
  7. Loans under the First Home Guarantee require scheduled repayments of the principal and interest of the loan for the full period of the agreement (with limited exceptions for interest only loans, which mainly relate to construction lending).
  8. Applicants must intend to be owner-occupiers of the purchased property. Investment properties are not supported by the First Home Guarantee.

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What property price thresholds apply?

For a property to be eligible it must be a ‘residential property’ – this term has a particular meaning under the First Home Guarantee and participating lenders can assist if there is any doubt. Eligible residential properties include:

  • 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

Specific dates and requirements apply for the different property types.

Use Housing Australia’s property price threshold tool to work out the maximum property purchase price in the area you’re interested in under the Guarantee.

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Important notes

All loan repayments must be made from the Everyday Transaction account. The $6 monthly account keeping fee is waived while the home loan is held. The Works Package Annual fee is payable yearly. Special rate offers are not available for construction loans. For our complete The Works Package conditions review The Works Package Conditions of Use.

*Comparison rates are calculated on a loan amount of $150,000 over a term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Eligibility criteria, terms & conditions, fees & charges apply. Please refer to the Fees and Charges

**A regional area is defined as Statistical Area Level 4 (ASGS SA4 2016) areas in a State or the Northern Territory that are not a capital city of that State or Territory; and Norfolk Island; or the Territories of Jervis Bay, Christmas Island or Cocos (Keeling) Islands; as defined in the version published by The Australian Bureau of Statistics (ABS) in July 2016. The ACT and greater capital city areas of each State and the Northern Territory are excluded from the RFHBG. SA4s are based on population density and labour markets; they vary in size reflecting these criteria.

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