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What is the Home Guarantee Scheme?
What is the Home Guarantee Scheme?

Learn more about the Home Guarantee Scheme and how it works.

Updated over a week ago

This content has been created for educational purposes only. Unloan may not provide all features discussed. Visit our product page here to learn more about our home loan features.

The Home Guarantee Scheme (HGS) is an Australian Government initiative to help you buy or build your home sooner. The Scheme is managed by Housing Australia on behalf of the Australian Government.

Please note that Unloan does not participate in the Home Guarantee Scheme, Victorian Homebuyer Fund or other government home-buyer assistance schemes. If you are eligible for the First Home Buyer Grant, these funds cannot contribute to your 20% deposit. Please speak to your conveyancer on how best to approach this.

There are three types of guarantees as of September 28, 2023:

  1. First Home Guarantee

  2. Family Home Guarantee

  3. Regional First Home Buyer Guarantee

Please refer to Housing Australia for more information regarding these guarantees.

How the HGS works

NHFIC works with participating lenders to facilitate loans to eligible home buyers who meet income eligibility thresholds and other eligibility criteria, but don’t have the 20% deposit typically required for a home loan.

Eligible home buyers can apply for a loan through a participating lender who has been authorised by NHFIC to participate in the HGS.

NHFIC provides a guarantee to the participating lender of up to 15% of the value of a home loan under the First Home Guarantee or the Regional First Home Buyer Guarantee, and up to 18% under the Family Home Guarantee. This enables the home buyer to buy a home without paying Lenders Mortgage Insurance. Please note that this guarantee is not a cash payment or a deposit for a home loan.

How do I know if I’m eligible for HGS?

To apply for the scheme, you must be eligible. To check your eligibility, visit the National Housing Finance and Investment Corporation (NHFIC) website.

How do I apply for HGS?

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

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