First Home Guarantee Scheme Changes
Update (June 2026): This scheme has been renamed and expanded. Since 1 October 2025 it operates as the Australian Government 5% Deposit Scheme, with no income caps, unlimited places, and higher property price caps. For the current 2026 rules, NSW price caps, participating lenders, and worked examples, see our up-to-date guide: Australian Government 5% Deposit Scheme: 2026 NSW Guide.
In April the Federal government announced First Home Guarantee Scheme Changes. From July 1 2023, friends, siblings and other family members will be able to jointly apply for the First Home Guarantee and Regional First Home Guarantee. They will be extended to non-first-home buyers who have not owned a property in the past 10 years.
The biggest change is permanent residents are now eligible, not just citizens!
All of this is part of the federal government’s promise to help ease the affordability crisis we are seeing.The biggest challenge with this is going to be finding a property under the price cap and the government has not announced if the price cap will increase for the 23-24 financial year.In New South Wales, the price cap of $900,000 for capital cities and regional centres, and $750,000 for the rest of the state means that options may be more limited than many buyers would like but if you are committed you’ll be able to find a place and make it work. Remember this isn’t meant to be a long-term solution, it’s a short-term one while you build up your equity.
To apply for the First Home Guarantee (FHBG) after the changes come through on July 1, home buyers must be: - an Australian citizen(s) or permanent resident at the time they enter the loan
- at least 18 years of age
- earning up to $125,000 for individuals or $200,000 for couples, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
- have a minimum 5% deposit saved (2% for the family home guarantee)
- intending to be owner-occupiers of the purchased property
- first home buyers who have not previously owned, or had an interest in, a property in Australia or home buyers who have not owned a property in the last 10 years.
- Able to secure a loan with a participating lender.
First Home Guarantee and Family Home Guarantee Property Price Cap Table
| State | Capital City and Regional Centre* | Rest of State |
|---|---|---|
| NSW | $900,000 | $750,000 |
| VIC | $800,000 | $650,000 |
| QLD | $700,000 | $550,000 |
| WA | $600,000 | $450,000 |
| SA | $600,000 | $450,000 |
| TAS | $600,000 | $450,000 |
| Territory | All areas | |
| ACT | $750,000 | |
| NT Regional | $600,000 | |
| Jervis Bay Territory & Norfolk Island | $550,000 | |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
Regional First Home Buyer Guarantee Property Price Cap Table
| State# | Regional Centre* | All other Regional Areas |
|---|---|---|
| NSW | $900,000 | $750,000 |
| VIC | $800,000 | $650,000 |
| QLD | $700,000 | $550,000 |
| WA | $450,000 | |
| SA | $450,000 | |
| TAS | $450,000 | |
| Territory# | Regional area | |
| ACT | Not applicable | |
| NT Regional | $600,000 | |
| Jervis Bay Territory & Norfolk Island | $550,000 | |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
Patrick is a Director and a Home Loan Specialist. He has been helping Australians with home loans since 2001. Prior to working as a mortgage broker Patrick was employed by Macquarie Bank for 3 years and also worked as an accountant for a publicly listed company. Patrick’s qualifications include:
Bachelor of Business, UTS Sydney. Majored in accounting and sub-majored in Finance and Marketing.
Diploma of Finance and Mortgage Broking Management FNS50310
Certificate IV in Financial Services (Finance/Mortgage Broking) FNS40804
Ready to Take the Next Step?
Whether you’re looking to buy your first home, refinance, or explore investment opportunities, Mortgage World Australia is here to help.
Fill out the contact form below, and one of our expert mortgage brokers will be in touch shortly to discuss your needs and guide you through your options.
Get Started Today!
