What is the First Home Guarantee (FHBG)?
The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible home buyers to buy a home sooner.
The guarantee enables eligible first home buyers or non-first home buyers who haven't owned a property in Australia in the last ten years to purchase a home with as little as 5% deposit, without having to pay Lenders' Mortgage Insurance (LMI).
People’s Choice is a participating lender offering the First Home Guarantee. If you’re interested in applying for the FHBG, please register your interest below or speak with our Home Loan Specialists to discuss the options available to you.
Who is eligible for the First Home Guarantee (FHBG)?
- You're applying as an individual or joint application. Joint applications can be made between married or de-facto couples, friends, siblings or other family members
- You intend to be owner-occupier of the purchased property
- You're a first home buyer or you haven't owned a property in Australia in the last ten years
You're an Australian citizen or permanent resident aged 18 years or over
You earned less than $125,000 in the previous tax year as an individual, or less than $200,000 as a couple
- You have saved a 5% deposit plus standard fees and charges (e.g. stamp duty)
What types of properties are eligible?
- An existing house, townhouse or apartment
A house and land package
- Land and a separate contract to build a home
- An off-the-plan apartment or townhouse
Property price caps
What else do I need to know?
- Specific timeframes and criteria apply to the different property types. The contract of sale and (if applicable) eligible building contract may have to be executed by specific dates
- You must be the sole registered owner/s of the property when it is the settlement date of your home loan
There is a limited allocation of guarantees available, which once taken up, the guarantee will not be available until a new allocation is released
- You can only receive the FHBG once
- The First Home Guarantee (FHBG) is an Australian Government initiative to support eligible home buyers purchase a home sooner. It does this by providing a guarantee that will allow eligible home buyers on low and middle incomes to purchase a home with a deposit of as little as 5% (lender's criteria apply).
- You can check your potential eligibility on the Housing Australia website.
- Housing Australia has developed a tool to help eligible home buyers find out the property price threshold for the suburb in which they are looking to purchase a property. The relevant dates and requirements for the different property types are set out here.
- To ensure the FHBG is only available for the purchase of a modest home, property price thresholds apply in capital cities, large regional centres and regional areas. You can find them here.
- No. The First Home Guarantee (FHBG) allows eligible home buyers with deposits as low as 5% to get a home loan without paying Lenders Mortgage Insurance (LMI) fees.
I’ve successfully gained a First Home Guarantee place reservation. What documentations do I need to provide People’s Choice to complete my application to obtain finance pre-approval?• Completed and signed application form – including signed privacy declaration;
• Needs Analysis;
• Verification of income and expenses – payslips etc;
• Evidence of 5% genuine savings;
• Evidence of funds to complete the transaction – savings plan/gift from family;
• Signed Home Buyer Declaration (Statutory Declaration) – Peoples Choice will provide this to you.