The Times Australia
The Times Real Estate

.

What Is the Australian Government First Home Buyers Scheme About?

  • Written by Times Media
First Home Buyer

For many Australians, buying a first home can feel like a daunting task—especially with rising property prices, tight lending rules, and the challenge of saving for a deposit. To ease this burden, the Australian Government has introduced a First Home Buyers Scheme, a set of programs designed to make it easier for eligible Australians to enter the property market sooner.

The Key Idea Behind the Scheme

The First Home Buyers Scheme helps first-time buyers overcome one of the biggest barriers to home ownership: the deposit. Traditionally, banks require a 20% deposit to avoid costly Lenders Mortgage Insurance (LMI). For many buyers, saving this amount can take years.

The scheme allows eligible buyers to purchase a home with as little as a 5% deposit, while the government guarantees the remaining amount (up to 15%). This guarantee means buyers can skip LMI, saving potentially tens of thousands of dollars.

The Different Programs Available

The government’s initiative isn’t just one scheme—it’s a collection of programs, each tailored to different circumstances:

  1. First Home Guarantee (FHBG):

    • Available to first-home buyers purchasing a new or existing home.

    • Only a 5% deposit is required, with the government acting as guarantor.

  2. Regional First Home Buyer Guarantee (RFHBG):

    • Specifically for people buying their first home in regional areas.

    • Encourages more Australians to settle outside major cities.

  3. Family Home Guarantee (FHG):

    • Designed for single parents with at least one dependent child.

    • Allows them to buy a home with as little as a 2% deposit.

Who Is Eligible?

Eligibility rules vary slightly depending on which program you apply for, but in general you must:

  • Be an Australian citizen or permanent resident.

  • Be a first home buyer (or not have owned property in the past 10 years).

  • Meet income caps (e.g., $125,000 per year for singles, $200,000 for couples).

  • Intend to live in the property (it can’t be bought as an investment).

  • Stay within property price caps, which differ across states and regions.

Benefits of the Scheme

  • Smaller deposit needed: Get into the market sooner with just 2–5%.

  • No Lenders Mortgage Insurance: Save thousands on upfront costs.

  • Encouragement for regional living: The regional scheme provides more options for buyers outside big cities.

  • Support for families: Single parents are given a unique pathway to stability.

Things to Keep in Mind

  • Limited places: The scheme only offers a set number of places each financial year, and demand is high.

  • Property caps: Price limits mean buyers may need to compromise on location or size.

  • Bank approval still required: You must still qualify for a loan under normal lending rules.

Final Thoughts

The Australian Government’s First Home Buyers Scheme is essentially a helping hand into the property market. By reducing the deposit hurdle and waiving mortgage insurance, it makes home ownership more achievable for thousands of Australians. For anyone looking to buy their first home—or a single parent seeking stability—it’s well worth exploring whether you qualify.

Here’s a clear and simple comparison table:


Comparison of First Home Buyer Schemes in Australia

Scheme Minimum Deposit Who It’s For Key Benefits Property Restrictions
First Home Guarantee (FHBG) 5% First-home buyers Avoid Lenders Mortgage Insurance (LMI), government guarantees up to 15% Must meet price caps (varies by state/region)
Regional First Home Buyer Guarantee (RFHBG) 5% First-home buyers purchasing in regional areas Same benefits as FHBG, but targeted to encourage regional living Must live in regional location & meet price caps
Family Home Guarantee (FHG) 2% Single parents with at least one dependent child Lower deposit requirement, government guarantees up to 18% Must live in the property, meet price caps

Property Times

Rubber vs Concrete Wheel Stops: Which is Better for Your Car Park?

When it comes to setting up a car park in Perth, wheel stops are a small feature that make a big difference. From improving driver accuracy to preventing costly damage, the right choice between rubber and concrete wheel stops could save you time, mon...

What Is the Australian Government First Home Buyers Scheme About?

For many Australians, buying a first home can feel like a daunting task—especially with rising property prices, tight lending rules, and the challenge of saving for a deposit. To ease this burden, the Australian Government has introduced a First ...

Flipping vs. Holding: Which Investment Strategy Is Right for You?

Are you wondering whether flipping a property or holding onto it is the better investment strategy? The answer isn’t one-size-fits-all. Both strategies have distinct advantages and risks, and choosing the right one depends on your financial goals, ...

A Guide to Smarter Real Estate Accounting: What You Might Be Overlooking

Real estate accounting can be a complex terrain, even for experienced investors and property managers. From tracking rental income to managing property expenses, the financial intricacies of real estate demand more than just basic bookkeeping. A si...

Times Magazine

Building a Strong Online Presence with Katoomba Web Design

Katoomba web design is more than just creating a website that looks good—it’s about building an online presence that reflects your brand, engages your audience, and drives results. For local businesses in the Blue Mountains, a well-designed website a...

September Sunset Polo

International Polo Tour To Bridge Historic Sport, Life-Changing Philanthropy, and Breath-Taking Beauty On Saturday, September 6th, history will be made as the International Polo Tour (IPT), a sports leader headquartered here in South Florida...

5 Ways Microsoft Fabric Simplifies Your Data Analytics Workflow

In today's data-driven world, businesses are constantly seeking ways to streamline their data analytics processes. The sheer volume and complexity of data can be overwhelming, often leading to bottlenecks and inefficiencies. Enter the innovative da...

7 Questions to Ask Before You Sign IT Support Companies in Sydney

Choosing an IT partner can feel like buying an insurance policy you hope you never need. The right choice keeps your team productive, your data safe, and your budget predictable. The wrong choice shows up as slow tickets, surprise bills, and risky sh...

Choosing the Right Legal Aid Lawyer in Sutherland Shire: Key Considerations

Legal aid services play an essential role in ensuring access to justice for all. For people in the Sutherland Shire who may not have the financial means to pay for private legal assistance, legal aid ensures that everyone has access to representa...

Watercolor vs. Oil vs. Digital: Which Medium Fits Your Pet's Personality?

When it comes to immortalizing your pet’s unique personality in art, choosing the right medium is essential. Each artistic medium, whether watercolor, oil, or digital, has distinct qualities that can bring out the spirit of your furry friend in dif...

The Times Features

NSW has a new fashion sector strategy – but a sustainable industry needs a federally legislated response

The New South Wales government recently announced the launch of the NSW Fashion Sector Strategy, 2025–28[1]. The strategy, developed in partnership with the Australian Fashion ...

From Garden to Gift: Why Roses Make the Perfect Present

Think back to the last time you gave or received flowers. Chances are, roses were part of the bunch, or maybe they were the whole bunch.   Roses tend to leave an impression. Even ...

Do I have insomnia? 5 reasons why you might not

Even a single night of sleep trouble can feel distressing and lonely. You toss and turn, stare at the ceiling, and wonder how you’ll cope tomorrow. No wonder many people star...

Wedding Photography Trends You Need to Know (Before You Regret Your Album)

Your wedding album should be a timeless keepsake, not something you cringe at years later. Trends may come and go, but choosing the right wedding photography approach ensures your ...

Can you say no to your doctor using an AI scribe?

Doctors’ offices were once private. But increasingly, artificial intelligence (AI) scribes (also known as digital scribes) are listening in. These tools can record and trans...

There’s a new vaccine for pneumococcal disease in Australia. Here’s what to know

The Australian government announced last week there’s a new vaccine[1] for pneumococcal disease on the National Immunisation Program for all children. This vaccine replaces pr...