Under the Home Guarantee Scheme (HGS) landscape, there are three different programs, tailored to assist first home buyers enter the property market sooner and with ease:
1. First Home Guarantee (FHBG): Through this program, the NHFIC guarantees a portion of the first home buyer’s loan with a participating lender. The NHFIC can guarantee up to 15% of the property’s value, but this guarantee is not a cash payment or a deposit for your home loan.
You still need to pay the deposit, but another salient feature of this program is that you can pay as low as 5% deposit without having to pay Lenders Mortgage Insurance (LMI). The First Home Guarantee can also be used in conjunction with the First Home Super Saver Scheme and other state and territory first home owner grants and stamp duty concessions.
This financial year, another 35,000 slots are available.
2. Regional First Home Guarantee (RFHBG): This program works very similarly to the First Home Guarantee, except it is for eligible first home buyers who have lived in a regional area during the preceding 12-month period or in an adjacent regional area. Interested applicants may check whether their suburb is listed as a regional area here.
It is important to note that if you are eligible for the RFHBG, you do not qualify for the First Home Guarantee. Home buyers who are not eligible for the RFHBG meanwhile, may qualify for the First Home Guarantee or the Family Home Guarantee.
The Regional First Home Guarantee offers 10,000 slots this financial year, so you should lodge your application on or before 30 June 2024.
3. Family Home Guarantee (FHG): The benefits of this program is meant for single parents and guardian of at least one dependent. Unlike the FHBG and the RFHBG, which allows a 5% minimum deposit for a home loan, the Family Home Guarantee instead allows 2%, which further eases the situation of individuals struggling to buy a home.
Another noteworthy feature of this guarantee is that it can be used by first home buyers or next home buyers, just as long as they are eligible and owner-occupiers. Property investors are not covered.
The FHG offers 5,000 slots only up until the end of June 2024.