First Home Buyer Government Schemes Explained: What You Need to Know

Scheme	Deposit Required	Who It’s For	Key Benefits
First Home Guarantee (FHBG)	5%	First home buyers who meet income & property price caps	Buy sooner with smaller deposit, no LMI
Regional First Home Buyer Guarantee (RFHBG)	5%	First home buyers in regional areas (living there 12+ months)	Supports regional buyers, no LMI
Family Home Guarantee (FHG)	2%	Single parents or guardians with dependent children	Enter market with very low deposit, no LMI
First Home Super Saver Scheme (FHSSS)	Save via super (up to $50k)	First home buyers saving for a deposit	Boost savings faster with tax advantages
First Home Owner Grant (FHOG)	Varies (grant amount $10k–$30k depending on state)	First home buyers of brand-new homes	Lump sum grant to help cover building/purchase costs

Buying your first home can feel overwhelming, especially with rising property prices and saving for a deposit. The good news is that the Australian Government has introduced a range of first home buyer schemes to make getting into the market easier. Here’s a clear breakdown of the most popular options and how they work.

1. First Home Guarantee (FHBG)

The First Home Guarantee helps eligible first home buyers purchase a property with as little as a 5% deposit – without needing to pay Lenders Mortgage Insurance (LMI).

• Who it’s for: First home buyers who meet income and property price caps.

• How it works: The government guarantees up to 15% of your loan, meaning the lender treats you as if you had a 20% deposit.

• Key benefit: Get into the property market sooner without having to save a full 20% deposit.

2. Regional First Home Buyer Guarantee (RFHBG)

For those buying in regional areas, this scheme also allows purchases with a 5% deposit and no LMI.

• Who it’s for: First home buyers in eligible regional locations who have lived there (or nearby) for 12 months.

• How it works: Similar to the FHBG, the government guarantees part of your loan.

• Key benefit: Encourages more people to buy and stay in regional communities.

3. Family Home Guarantee (FHG)

This scheme supports single parents or single legal guardians with dependent children.

• Who it’s for: Single parents with at least one dependent child, regardless of whether you’ve owned property before.

• How it works: You can purchase a home with as little as a 2% deposit and avoid LMI.

• Key benefit: Makes it easier for single parents to secure stable housing.

4. First Home Super Saver Scheme (FHSSS)

This scheme lets you use your superannuation fund to save for your first home deposit.

• Who it’s for: First home buyers who are saving a deposit.

• How it works: You can make voluntary contributions into your super (up to $15,000 per year and $50,000 in total). These savings can then be withdrawn for your home deposit, often at a lower tax rate.

• Key benefit: Tax-effective way to boost your savings faster.

5. First Home Owner Grant (FHOG)

Each state and territory offers its own First Home Owner Grant, which is a one-off payment.

• Who it’s for: First home buyers building or buying a brand-new home.

• How it works: Grant amounts vary by state (from $10,000–$30,000 in some cases).

• Key benefit: Helps cover building costs or goes directly toward your deposit.

  
  

How Do You Apply?

Each scheme has specific eligibility criteria around:

• Income thresholds

• Property price caps

• Residency requirements

A mortgage broker can help check your eligibility and apply for the schemes on your behalf.

Final Thoughts

Government schemes are designed to make the dream of homeownership more achievable – especially for first home buyers. The key is knowing which scheme (or combination of schemes) suits your situation.

At Kardinia Finance, we’ll guide you through the options, explain eligibility, and handle the application process so you can focus on finding your dream home.

👉 Thinking about your first home? Contact us today to see if you qualify for a government scheme.