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Expanded Home Guarantee Scheme launches

by Annie Kane5 minute read

From 1 July, 40,000 new places under the federal government’s Home Guarantee Scheme have become available to help Australians buy their own home.

More places have become available under the expanded Home Guarantee Scheme.

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The scheme currently comprises the First Home Guarantee (FHBG) – previously known as the First Home Loan Deposit Scheme – and the Family Home Guarantee (FHG). 

It allows eligible first home buyers to buy a property with a deposit as small as 5 per cent (and eligible single parents with a deposit as small as 2 per cent), while the government guarantees the remaining amount to mitigate the need for borrowers to pay lenders mortgage insurance (LMI). 


The federal government is now making available 35,000 places each financial year to support first home buyers to purchase a home with a deposit of as little as 5 per cent (the First Home Guarantee); and 5,000 places each financial year to support single parents with dependents to purchase a home with a deposit of as little as 2 per cent (the Family Home Guarantee).

This year, there are updated property price caps, which have risen to reflect recent increases in property prices and to make more properties available for purchase using the scheme. They are as follows: 

Area Home Guarantee Scheme
  Existing property price cap (First Home Loan Deposit Scheme and Family Home Guarantee) Updated property price cap (First Home Guarantee and Family Home Guarantee), from 1 July 2022
NSW – capital city and regional centre $800,000 $900,000
NSW – other $600,000 $750,000
Victoria – capital city and regional centre $700,000 $800,000
Victoria – other $500,000 $650,000
Queensland – capital city and regional centre $600,000 $700,000
Queensland – other $450,000 $550,000
Western Australia – capital city $500,000 $600,000
Western Australia – other $400,000 $450,000
South Australia – capital city $500,000 $600,000
South Australia – other $350,000 $450,000
Tasmania – capital city $500,000 $600,000
Tasmania – other $400,000 $450,000
ACT $500,000 $750,000
Northern Territory $500,000 $600,000
Jervis Bay Territory and Norfolk Island $550,000 $550,000
Christmas Island and Cocos (Keeling) Islands $400,000 $400,000

The Home Guarantee Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC), whose chief executive Nathan Dal Bon welcomed the newly expanded regime opening.

He said: “As an organisation, we support Australians across the housing spectrum from those renting in community housing, through to Australians with the goal of homeownership. We expect many more Australians to be able to bring forward buying a home under the expanded scheme.”

Speaking on Friday (1 July), the Minister for Housing, Minister Homelessness and Minister for Small Business, Julie Collins MP, commented that the Labor government was committed to introducing a suite of policies that will make it easier for Australians to buy a home, and deliver more social and affordable housing.

She confirmed that the Albanese government would soon be announcing further details of the  targeted support to Australians living in regional areas [through] a new Regional First Home Buyer Support Scheme.

“This new scheme will join the Home Guarantee Scheme and deliver on a commitment the Albanese Government made before the election, she said.

[Related: Labor pitches new housing policy, pledges 40% equity purchase]

Expanded Home Guarantee Scheme launches
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Annie Kane

Annie Kane


Annie Kane is the editor of The Adviser and Mortgage Business.


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