Significant changes to the Australian Government’s Home Guarantee Scheme are now in place, making home ownership more accessible for first home buyers across the ACT and Australia. The expanded scheme removes previous limitations and increases property price caps to better reflect current market conditions.

What is the Home Guarantee Scheme?

The Home Guarantee Scheme is an Australian Government initiative that helps home buyers to buy a home sooner. The Home Guarantee Scheme supports home buyers who have saved a small deposit, and meet other eligibility criteria, to get a home loan to buy a home. For the ACT there are two Guarantees available to suit different types of home buyers.

It is important to note that a Guarantee protects the Participating Lender, not the home buyer. It is not a cash payment to a home buyer, or a deposit for a home – home buyers will not receive any funds. It essentially means that if a home buyer defaults on their home loan, and selling the property doesn’t cover the outstanding amount they owe on their mortgage, then Housing Australia ‘guarantees’ to pay the lender a shortfall up to a pre-agreed limit.

 

What are the benefits?

The benefits are access to home loans easier and earlier.

Home buyers usually need a deposit of 20% of the Property Value to get a home loan, and those with a smaller deposit may require Lenders Mortgage Insurance (LMI).

Under the Home Guarantee Scheme, Housing Australia provides a Guarantee to the lender, so home buyers only need a 2% or 5% deposit (depending on the type of Guarantee). This helps home buyers to buy a home sooner, with lower upfront costs.

Home buyers are responsible for meeting all costs and repayments for home loans associated with the Home Guarantee Scheme including but not limited to stamp duty, application fee and legal costs.

For the First Home Guarantee the pre-agreed limit is up to 15% of the Property Value; and for the Family Home Guarantee it is up to 18%. The exact amount is set during the application process and depends on the deposit and the Property Value when purchased.

 

What is the First Home Guarantee?

The First Home Guarantee supports home buyers who have saved a minimum deposit of 5% of the Property Value, and meet other eligibility criteria, to buy a home. Housing Australia provides a Guarantee to the Participating Lender to enable you to borrow up to 95% of the Property Value. For the First Home Guarantee, this is up to 15% of the Property Value.

 

What is the Family Home Guarantee?

The Family Home Guarantee supports single parents or single legal guardians of one or more dependent children to buy a home. You need to have saved a minimum deposit of 2% of the Property Value and meet other eligibility criteria.

Housing Australia provides a Guarantee to the Participating Lender to enable you to borrow up to 98% of the Property Value.  For the Family Home Guarantee, this is up to 18% of the Property Value.

 

Who is eligible? 

To qualify for the First Home Guarantee, you need to meet eligibility criteria relating to your personal circumstances including:

• Citizenship and permanent residency – be an Australian citizen(s) or permanent resident(s)
• Income – taxable income must be at or below the income cap – $125,000 for individuals or a combined $200,000 for joint applicants
• Deposit – have minimum deposit savings of at least 5% of the Property Value
• Prior property ownership – you must be a first home buyer or have not owned a property in Australia in the last 10 years (applies to both in a joint application) at the Home Loan Date*
• Owner-occupier – you must buy or build a home to live in (investment properties are not eligible)
• Minimum age – you must be at least 18 years old.

 

What type of home can you buy?

Applicants can buy a new or existing residential property below the price cap for the location.

• Existing house, townhouse or apartment
• Vacant land with separate contract to build a home
• Off-the-plan apartment or townhouse
• House and land package

 

What changed on 1 October 2025?

From 1 October 2025, the Scheme removed limits to the number of Government guarantees available, giving all Australian first home buyers the chance to enter the market with a deposit of as little as 5% and avoid Lenders Mortgage Insurance. No place limits: all Australian first home buyers who have saved a 5% deposit can apply.

• No income caps: first home buyers with higher incomes can access the Scheme.
• Higher property price caps: to help home buyers where property prices have increased.

As of 1 October 2025, the ACT property price cap is $1,000,000 (was $750,000).

Note both the purchase price and the Property Value must not exceed the price cap. For new builds with vacant land and a separate contract to build a home, the combined land purchase price and build cost must be equal to or under the price cap. Property Value is assessed by the Participating Lender, and it may be different to the purchase price. In those situations, please speak to your Participating Lender about what this means for you.

 

What type of home loan do you need?

Applicants will need a home loan from a Home Guarantee Scheme Participating Lender, that meets certain requirements including that it is:

• an owner-occupier home loan
• requires regular Principal and Interest repayments (with limited exceptions for interest-only loans), and
• has a term of up to 30 years (plus up to three years to build a new home).
• If the loan relates both to the purchase of vacant land and to the construction of a house, the loan may still be eligible even if the terms of the construction loan agreement permit Interest Only payments for the partially funded period.

 

How do you apply?

Home buyers can apply through a Participating Lender authorised by Housing Australia to offer the Home Guarantee Scheme. These lenders will assess eligibility based on their lending criteria, guide the applicant through the application process and explain the documents and information needed. They will submit an application to Housing Australia and inform the applicant if they are eligible and if a place is available. Applicants can’t apply directly to Housing Australia for a Guarantee – only through a Participating Lender as part of a home loan application.

The Lender will assess eligibility and submit an application to Housing Australia to reserve a Guarantee place which will be held for 14 days to give time to complete the application and apply for a home loan.

The applicant will work with the Participating Lender to complete the application by providing documents including proof of citizenship or permanent residency, your ATO Notice of Assessment, and a signed Commonwealth Statutory Declaration confirming the applicant meets the Scheme eligibility criteria.

Once all required documents are provided, the Participating Lender will ask Housing Australia to secure the Guarantee Place, allowing time to find a home.

If eligible, your Participating Lender will notify the applicant that their place is pre-approved. They have 90 days to find a home and sign a contract of sale. The home loan will also need to be approved by the lender, based on their own lending criteria.

To retain the Guarantee on the home loan, the applicant must meet ongoing requirements, such as living in the property as an owner-occupier. If these criteria aren’t met, the Guarantee may no longer apply, and the lender may require you to pay LMI or other additional costs.

 

Single parents

There are separate provisions available for single parents to buy homes on your own.

To be eligible, you need to be single (no spouse or de facto partner – if you’re separated but not divorced, you’re not considered single) and the natural parent, adoptive parent, or legal guardian of one or more dependents.

A person is a dependent child if you are their natural or adoptive parent and they are a dependent child within the meaning of the Social Security Act; or living with you and in receipt of a disability support pension (as defined by the Social Security Act).

To access the Scheme, you need to meet eligibility criteria, including:

• Australian citizen or permanent resident, at least 18 years old
• saved a minimum deposit of 2%
• single parent or single legal guardian of one or more dependent children
• not have any other property interest once your new home settles
• buying a home in Australia priced at or below the location’s price cap
• planning to live in the home as an owner-occupier (no investment properties)
• applying for an owner-occupier home loan with Principal and Interest repayments from a Participating Lender, up to 30 years (plus up to three years to build a new home)
• applying on your own (no joint applications).

You must also meet your Participating Lender’s credit policy and loan approval criteria. Even if you are eligible for the Scheme, you may not get a home loan if you do not meet the lending requirements of your Participating Lender.

Key features and benefits

• Low Deposit: Minimum 2% for single parents or legal guardians of one or more dependent children. Take years off your saving timeline
• No Income Caps: Your income doesn’t restrict your access. Support for more Australians, no matter what you earn
• Avoid Extra Costs: No LMI fees, reducing upfront costs. Have more money to put towards the home you want
• Wide Choice of Home Types: Houses, townhouses, apartments, house/land packages, off-the-plan, or building on vacant land – at or below location price caps. More flexibility to find a home that fits your lifestyle, location and budget
• Government-Backed Support: A Government guarantee is provided to the lender for your loan. Making home ownership more achievable
• Unlimited Spots and No Waiting List: Apply when you’re ready, no queues. Get into your family home sooner.

Home buyers can apply through a Participating Lender authorised by Housing Australia to offer the Home Guarantee Scheme. These Step into your new family home with a minimum 2% deposit and backing from the Australian Government. No income caps, no waitlists and no LMI helps get you into your own home sooner, where you can create lasting memories in a place of your own.

 

For detailed information about eligibility and participating lenders, visit the Housing Australia website. To discuss purchasing options at Ginninderry, contact our sales team.

Note: This article provides general information only and should not be considered financial advice. Always consult with qualified financial professionals regarding your individual circumstances.