Are you eligible for these first home buyer schemes?

Getting your foot on the property ladder can be tough – but the good news is help is available!

  • 8 October 2021

    Buying your first home is a milestone we all dream of, but with high property prices and cost of living pressures facing so many essential workers, getting your foot on the property ladder can feel tougher than ever.

    The good news is help is available! Could you be eligible for one of these schemes? 

    A home sweet home board sits behind a pot plant on a window sill.

    Home Guarantee Scheme

    The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers purchase a home sooner. The Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC). 

    There are two schemes available under the HGS:

    The First Home Guarantee Scheme (FHGS)

    The purpose of the First Home Guarantee (FHBG) is to support eligible first home buyers to enter the housing market sooner. 

    It does this by allowing NHFIC to issue up to 35,000 guarantees each financial year from 2022-23 for eligible loans to first home buyers with a deposit of between 5 and 20 per cent of the property value. But with FHBG, the government ‘guarantees’ the loan which means borrowers can secure a home loan with a very low minimum deposit but without getting slugged with LMI costs. 

    What can it be used for?

    The FHBG can be used to buy a new or existing residential property including existing dwellings, a house and land package or an off the plan apartment or townhouse.

    Are there property price caps?

     Yes, properties can’t exceed the relevant price cap for the area they’re located in - there are different price caps for capital cities and large regional centres, plus other regional areas.

    Who can apply?

    You must be an Australian citizen over 18 years old and intend to live in the property. You also need to meet the income eligibility for the scheme - up to $125k for singles and up to $200k for couples for the previous financial year.

    How many places are there?

    There are limited places each financial year so don’t miss out! As one of a select group of lenders offering home loans through the scheme, we’re thrilled to be helping hard working educators and their families buy their first home sooner.

    Ask us about the scheme today

    More links and tools:

    The Family Home Guarantee (FHG)

    The FHG is another federal government initiative that helps single parents (with at least one dependent child) to buy a family home with as little as 2% deposit and no Lenders Mortgage Insurance. Unlike the FHBG, the Family Home Guarantee is available to eligible single parents regardless of whether they’re a first home buyer or a previous home owner. 

    What can the FHG be used for?

    Like the FHBG, the FHG can be used to purchase a new or existing residential property.

    Are there property price caps? 

    Yes the same price caps that apply to the FHBG, also apply to the FHG.

    Who can apply for the scheme?

    You must be an Australian citizen over 18 years old and a single parent with at least one dependent who intends to live in the property. Your income also can’t exceed $125k for the previous financial year, but child support payments aren’t included as income.

    How many places are there?

    There are limited places in the scheme each financial year,
    Along with the FHBG, Teachers Mutual Bank is really proud to be one of a select group of lenders offering loans through the FHG to borrowers, but places are limited so don’t miss out!

    Ask us about the FHG today

    More links and tools:

    State Government Grants

    Eligible borrowers may be able to use these guarantees with other assistance programs like state and territory first home owner grants and stamp duty concessions. Visit your state or territory government website for more.

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