Welcome to Finance Friday!
Ok, so it’s not really a normal thing for us to be sharing, but as I take a deep dive into the Home Guarantee Scheme and how I can hopefully make it work for me and my situation, it just felt right to share with all our fellow Pineapples that might find themselves in the same boat.
So if you’re sitting there nodding along like you know what I’m talking about, but in reality you’re thinking “what in the darn heck is the Home Guarantee Scheme”, let me enlighten you with the help of our friends at Bernie Lewis Home Loans, who have kindly agreed to answer all my questions. Let’s roll!
Sooooo, what is the Home Guarantee Scheme?
The Home Guarantee Scheme includes the First Home Guarantee, Regional First Home Buyer Guarantee, and Family Home Guarantee. Basically, the federal government acts as a guarantor on a loan which means that if you’re eligible, you can go ahead and buy a house with a smaller deposit and no lender’s mortgage insurance payable.
Let’s dive a little deeper… how do you know if you’re eligible for each guarantee scheme?
Good question! There are a few more rules and regulations around these programs, but as a bit of a summary here’s a list of the eligibility criteria for each Guarantee:
First Home Guarantee
You must be…
- applying as an individual or couple (married / de facto)
- an Australian citizen(s) at the time they enter the loan OR a permanent resident of Australia
- at least 18 years of age
- earning up to $125,000 for individuals or $200,000 for couples, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
- intending to be owner-occupiers of the purchased property
- first home buyers who have not previously owned, or had an interest in, a property in Australia.
- Applicants can also be friends, siblings, and other family members
Regional First Home Buyer Guarantee
You must be…
- applying as an individual or couple (married / de facto)
- an Australian citizen(s) at the time they enter the loan OR a permanent resident of Australia
- at least 18 years of age
- earning up to $125,000 for individuals or $200,000 for couples, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
- intending to be owner-occupiers of the purchased property
- first home buyers who have not previously owned, or had an interest in, a property in Australia
- home buyers (or at least one borrower when applying as a couple) must have lived in the regional area or adjacent regional area they are purchasing in for the preceding 12-month period to the date they execute the home loan agreement (also called the Home Loan Date)*.
- Applicants can also be friends, siblings, and other family members
Family Home Guarantee
You must be…
- applying as an individual
- a single parent with at least one dependent child (see Single Parent note below)
- an Australian citizen at the time they enter the loan OR a permanent resident of Australia
- at least 18 years of age
- be earning no more than $125,000 per year
- intending to be owner-occupier of the purchased property
- NOT currently own property (see Previous Home Ownership note below).
- Applicants can also be single legal guardians of children, such as aunts, uncles, and grandparents.
And what exactly do you need to get started in one of these guarantee schemes?
For the First Home Guarantee & Regional First Home Buyer Guarantee, eligible home buyers will need a 5% deposit. Under the Family Home Guarantee, eligible home buyers will need a 2% deposit. It is important to note that the respective state fees and charges are payable on top of these minimum deposit amounts.
There’s been a few changes to these schemes lately, what are some of the most important changes to note?
It’s been really great to see these schemes become more inclusive, opening them up to a larger range of individuals, couples and families to make the most of it.
One of the more noteworthy changes relates to permanent residents of Australia, who now can access all 3 guarantees under the scheme, where previously it was restricted to Australian citizens.
The Scheme will also now allow friends, siblings, and other family members to jointly apply for the First Home Guarantee and Regional First Home Guarantee. Non-first home buyers who have not owned a property in the past 10 years will also have access.
The Family Home Guarantee too has become more inclusive. Previously, just single natural or adoptive parents with dependents were eligible. This has now been expanded to include single legal guardians of children, such as aunts, uncles, and grandparents.
It almost sounds too good to be true… are there any catches?
Well, there are only 35,000 First Home Guarantees places made available every year — but some good news, from now up until June 30, 2025, there will be an additional 10,000 places available per year for the Regional First Home Buyer Guarantee and 5,000 places available per year for the Family Home Guarantee.
Ok, I’m keen to see if any of these options might work for me. What’s the next step?
Get in touch with us! You can speak with us about the eligibility criteria, and then we can check it out and see if you will qualify, as well as which lenders present well with the guarantees. We love getting our clients into their homes, with the best conditions possible!
So there you have it folks! If you think you’re ticking the boxes for eligibility, reach out to the incredible team at Bernie Lewis Home Loans — they seriously know what’s what when it comes to grants, schemes, lender criteria and more. So you’ll walk away with the best mortgage set up for you!
Millie x
*Information has been drawn directly from Bernie Lewis Home Loans and the HomeSeeker website. Always consult a professional to see what’s right for you.
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