The First Home Guarantee was the main stream of the Australian Government's Home Guarantee Scheme. It now operates as the Australian Government 5% Deposit Scheme, and many buyers and lenders still use the old name.
How It Works
Normally, if you borrow more than 80% of a property's value, the lender charges lenders mortgage insurance (LMI). Under the scheme, the government guarantees part of your loan instead. That means an eligible buyer can purchase with a small deposit without paying LMI, which can save thousands of dollars or let you buy sooner.
The guarantee is not a cash grant. You still borrow the full loan amount from a participating lender and repay it as normal.
Who It Is For
The scheme is aimed at first home buyers and some single parents buying a home to live in. Eligibility covers things such as citizenship or residency, age, prior property ownership, and a property price cap that depends on where you buy.
Current Figures
The deposit thresholds, price caps and eligibility rules are set by the government and have changed several times, including a significant expansion in October 2025. We do not repeat those figures here. See our First Home Guarantee guide for the current price caps, each checked against the official source with the date we last reviewed them.
How to Apply
You apply through a participating lender, not directly with the government. Not every lender is on the panel, and lenders apply their own credit policy on top of the scheme rules. A NIK Finance broker can check your eligibility and match you with a participating lender.