Federal Government Boosts Homeownership with 50,000 New Guarantee Scheme Places
The Federal Government has announced a significant expansion of its highly successful Home Guarantee Scheme, making an additional 50,000 places available to eligible Australians looking to enter the property market. These new opportunities begin on 1 July 2025 and run through to 30 June 2026. They offer a key pathway for first-home buyers, regional buyers, and single parents to achieve their homeownership dreams.
This large increase in available spots aims to remove common barriers to entry, such as the need for a big deposit. This news is very welcome for aspiring homeowners across Australia.
“This expansion is a game-changer for countless Australians looking to enter the property market. We’re committed to helping every eligible applicant navigate these schemes and turn their homeownership dreams into reality.” – Ez Mortgage Broker
Understanding the Scheme Expansion
The 50,000 new Home Guarantee Scheme places are strategically divided among three important government guarantees:
- 35,000 places for the First Home Guarantee (FHBG): This helps eligible first home buyers purchase a home with a deposit as low as 5%. They do not need to pay Lenders’ Mortgage Insurance (LMI).
- 10,000 places for the Regional First Home Guarantee (RFHBG): This supports eligible regional first home buyers. Applicants must have lived in the regional area they are buying in (or an adjacent area) for the 12 months before applying.
- 5,000 places for the Family Home Guarantee (FHG): This guarantee helps eligible single parents or legal guardians with dependent children. It allows them to purchase a home with a deposit as low as 2%, without LMI.
Checking Your Eligibility
To find out if you qualify for the First Home Guarantee, use the Eligibility Tool for a quick check of the main criteria. This tool is a guide only. Your Participating Lender will confirm your final eligibility.
General requirements for these government guarantee programs include:
- Being an Australian citizen(s) or permanent resident(s) at the time you enter the loan.
- Being at least 18 years of age.
- Intending to be owner-occupiers of the property.
- Applying as an individual or two joint applicants (e.g., a friend, sibling, or other family member).
What Kind of Property Qualifies?
You can buy a new or an existing residential property. Its purchase price must be below the set price cap for that location.
Use the Postcode Search Tool to check the price cap for your preferred buying area. This tool is a guide only. Always confirm the exact price cap with your Participating Lender for any property you are considering.
Both the purchase price and the property value must not go over the price cap. For new builds with vacant land and a separate building contract, the combined land purchase price and build cost must be equal to or under the price cap.
Understanding Your Home Loan Options
You will need a home loan from a Home Guarantee Scheme Participating Lender. This loan must meet certain requirements:
- It must be for an owner-occupier.
- It generally requires regular Principal and Interest repayments (with some exceptions for interest-only loans).
- It has a term of up to 30 years (plus up to three years to build a new home).
Your Expert Guide to Government Support
Navigating government support programs can be complex. Specific eligibility rules and application steps are always involved. This is where a qualified mortgage broker’s expertise becomes very helpful.
At EZ Mortgage Broker, our team plays a key role in making these pathways simpler for our clients. We understand the details of each guarantee. We provide personalised guidance to:
- Assess Your Eligibility: We clarify the criteria, including residency, age, and application type.
- Simplify the Process: We handle the legwork. This includes understanding rules, connecting you with lenders, and helping with paperwork.
- Maximise Your Opportunity: We help you apply for the best scheme for your situation. This gets you into your home faster and with less stress.
Minimum deposit requirements and housing price caps still apply for all Home Guarantee Scheme places.
Important Compliance Note: Please note that Home Guarantee Scheme places are limited. They are available from 1 July 2025 to 30 June 2026. Eligibility criteria apply, and applications must be made with a participating lender. Final loan approval is not guaranteed. This information is for general guidance only and is not financial advice. We encourage all interested individuals to review the official Housing Australia website for full details. Also, see the MFAA’s new Home Buying Schemes in Australia guide. This guide is found in the Purchasing Property section of the MFAA’s Find a Broker website.
Ready to explore your homeownership pathway?
Don’t miss this big chance to get government support for your home loan. Contact ez Mortgage Broker today. Get personalised, expert advice on how these new Home Guarantee Scheme places could benefit you.
Contact Us: Phone: 1300 050 099 Email: [email protected] Website: www.ezmortgagebroker.com.au
