The First Home Guarantee (formerly First Home Loan Deposit Scheme) allows eligible first-home buyers to purchase a property with as little as 5% deposit — with the government guaranteeing 15% of the purchase price, removing the need for LMI. This saves buyers $15,000-$35,000 in lender’s mortgage insurance. Here is everything you need to know for 2026.
How the First Home Guarantee Works
The National Housing Finance and Investment Corporation (NHFIC) guarantees 15% of the property value on behalf of the buyer. The lender (one of 32 participating lenders including major banks and credit unions) sees the loan as effectively 80% LVR, so no LMI applies. The buyer saves the LMI premium — typically $15,000-$35,000 depending on purchase price.
2026 Property Price Caps
| Location | Price Cap |
|---|---|
| Sydney | $900,000 |
| Melbourne | $800,000 |
| Brisbane | $700,000 |
| Adelaide, Perth | $600,000 |
| Regional VIC | $650,000 |
| Regional NSW | $750,000 |
Income Caps (2025-26 Financial Year)
| Buyer Type | Income Cap |
|---|---|
| Single applicant | $125,000 |
| Couples (combined) | $200,000 |
Places Available in 2026
The government allocates 35,000 places per financial year for the First Home Guarantee. Places are claimed on a first-come, first-served basis. The scheme regularly fills — apply early in the financial year (July-August) to avoid missing out. Regional First Home Buyer Guarantee (10,000 additional places) and Family Home Guarantee (5,000 places for single parents) run alongside the main scheme.
Participating Lenders
32 lenders participate in 2026 including Commonwealth Bank, NAB, Westpac, ANZ, Bendigo Bank and numerous credit unions. Not all lenders offer the same rates — compare carefully. A mortgage broker familiar with the scheme can help navigate lender-specific policies.
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