What Is the First Home Guarantee 2026 and Who Qualifies?

The First Home Guarantee (formerly the First Home Loan Deposit Scheme) is a federal government program that allows eligible first home buyers to purchase a new or established home with as little as 5% deposit and no lenders mortgage insurance (LMI). The government guarantees the remaining 15% of the purchase price. In 2026, 35,000 places are available per financial year across all participating lenders. BK Home Broker helps buyers navigate the First Home Guarantee for new builds in QLD and VIC.

What Is the First Home Guarantee?

The First Home Guarantee is part of the federal Home Guarantee Scheme, administered by Housing Australia. Under the guarantee, the federal government acts as guarantor for the top 15% of a home loan — meaning you only need 5% deposit and the bank lends the remaining 95% without charging LMI. The guarantee is not a cash payment — it is a commitment from the government to the lender. Buyers still take out a normal home loan and make normal repayments.

Who Qualifies for the First Home Guarantee in 2026?

To be eligible for the First Home Guarantee in 2026: Australian citizen or permanent resident (18+ years old). First home buyer: you have never owned a property in Australia (including as an investor). Income test: $125,000 or less (singles) / $200,000 or less (couples) based on previous financial year taxable income. Intention to occupy: you must intend to move in as your principal place of residence. Property type: new build, off-the-plan, newly built house and land, or established home. Property price cap: varies by location — $700,000 for Brisbane and QLD regions; $800,000 for Melbourne; $650,000 for Geelong and regional VIC (check housing.gov.au for current caps).

First Home Guarantee vs Deposit — How It Works in Practice

Without the First Home Guarantee: to buy a $650,000 property without LMI, you need a 20% deposit ($130,000). With LMI, you can buy with 5% ($32,500) but pay $15,000–$20,000 in LMI. With the First Home Guarantee: you purchase with 5% deposit ($32,500) and pay zero LMI — the government guarantee replaces the LMI requirement. You borrow 95% of the purchase price ($617,500) and repay it normally. Net saving compared to paying LMI: $15,000–$20,000.

Regional Home Guarantee — For Regional Buyers

The Regional Home Guarantee is a separate stream within the Home Guarantee Scheme. It allows eligible buyers (not just first home buyers — previous owners who haven't owned in 5+ years also qualify) to purchase a new build in a regional area with 5% deposit and no LMI. Geelong, Ballarat, Bendigo, Toowoomba, Caboolture South and Moreton Bay all qualify as regional areas under this scheme. Price caps for the Regional Home Guarantee are typically higher than standard First Home Guarantee caps.

How to Apply for the First Home Guarantee

You apply through a participating lender (major banks and many non-bank lenders participate). Steps: 1. Check eligibility at housingaustralia.gov.au or via BK Home Broker. 2. Find a participating lender and apply for pre-approval. 3. The lender submits a reservation request to Housing Australia. 4. You receive a guarantee reservation (valid for 90 days). 5. Find your property and exchange contracts within the 90-day window. 6. The lender settles the loan with the guarantee in place. Guarantee places fill up throughout the year — applying early (July–September) gives the best chance of securing a place.

Can You Use the First Home Guarantee for Off-the-Plan?

Yes. The First Home Guarantee explicitly covers off-the-plan purchases and house and land packages. For off-the-plan, the guarantee reservation must remain valid until settlement — which can be 12–24 months away. Buyers should confirm with their lender that the guarantee can be extended if build timelines are delayed. BK Home Broker works with lenders experienced in handling First Home Guarantee applications for off-the-plan properties.

First Home Guarantee + QLD FHOG: Stacking Incentives

First home buyers in QLD can stack multiple incentives: First Home Guarantee (5% deposit, no LMI) + QLD First Home Owner Grant ($30,000 at settlement — drops to $15,000 after 30 June 2026) + QLD stamp duty concession (zero duty on new builds under $700,000). Total stacked benefit on a $650,000 QLD new build: $30,000 FHOG + ~$21,000 stamp duty saving + ~$15,000 LMI saving = ~$66,000 in combined incentives. This is the strongest first home buyer incentive stack in Australia, available until 30 June 2026.

How BK Home Broker Helps

BK Home Broker is an Australian property broker specialising in new builds across QLD and VIC. We guide first home buyers through First Home Guarantee applications, FHOG claims, and stamp duty concessions — at zero cost. Developers pay our commission. We match buyers to new builds that qualify under the scheme's price caps and connect them with lenders experienced in First Home Guarantee approvals. Book a free consultation at bkhomebroker.com.au.

Frequently Asked Questions

Does the First Home Guarantee affect my borrowing capacity? No. It changes the deposit requirement but not the loan amount. Your borrowing capacity is still assessed based on income, expenses, and debts as normal.

Can both people in a couple use the First Home Guarantee? A couple shares one guarantee place — you apply jointly. Both applicants must meet the eligibility criteria.

What happens if I don't move in after using the First Home Guarantee? You must intend to occupy the property at the time of purchase. Failure to occupy may result in the guarantee being revoked, and you may be liable for LMI retrospectively. Always check current conditions at housingaustralia.gov.au.