The ‘First Home Guarantee’ previously known as the ‘First Home Loan Deposit Scheme’ or FHLDS has successfully helped almost 60,000 Australians begin their journey towards owning a home. The scheme was brought in by the Coalition Government in the 2019/2020 financial year to help eligible first home buyers break into the property market with a deposit as low as 5% of the property value.

Overview of the Scheme:

Under regular circumstances, first home buyers who have saved a deposit that is less than 20% of the property value would need to pay lenders’ mortgage insurance. However, under the ‘First Home Guarantee’ scheme eligible first home buyers can purchase a home with a deposit as low as 5% of the property value, without the need to pay lenders’ mortgage insurance.

What Properties Can I Buy?

For a property to be eligible it must be classified as a ‘residential property’, i.e. a property that you can live in. Eligible residential properties include:

  • An existing house, townhouse, or apartment;
  • A house and land package;
  • Vacant land and a separate contract to build;
  • An off-the-plan apartment or townhouse.


There are various criteria for an applicant to be deemed eligible, which you can find here. However, in order to be eligible you must:

  • Be an Australian citizen;
  • Be aged 18 years or older;
  • Have a minimum of 5% of the property value saved;
  • Have your previous financial year income be under $125,000 for single applicants or $200,000 for joint applicants (couples).

Price Caps on Properties:

The ‘First Home Guarantee’ scheme is there to assist first home buyers in the purchase or construction of a modest home with price thresholds in place depending on your location. As of 1 July 2022 the price caps for NSW are as follows:

  • Capital City & Regional Centres = $900,000
  • Rest of State = $750,000

As your price cap may vary from postcode to postcode, you can use the postcode tool located here to help find your area’s price threshold.

How to Apply:

The scheme is administered by the ‘National Housing Finance Corporation (NHFIC)’, but all applications for the scheme must be made directly to one of 33 participating lenders. It is important that you apply for a place via a well-connected and experienced broker who can help you track down the right lender for you. If you think that a ‘First Home Guarantee’ might be right for you or if you would like to know more, be sure to talk to the team at Crest Mortgages & Finance today to discuss your circumstances.