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New Financial Year, New Opportunity to Get a Government Boost!

Published: 17 October 2025

Dreaming of Buying Your First Home in Australia with Just a 5% Deposit?

Recently, Australian citizens and permanent residents (PR) can access the First Home Guarantee (FHBG) scheme. With as little as a 5% deposit, you could own your first home without needing to pay thousands in Lenders Mortgage Insurance (LMI).

🏡 What Is the First Home Guarantee (FHBG)?

The First Home Guarantee (FHBG) is part of the Australian Government’s Home Guarantee Scheme (HGS), designed to help eligible first home buyers purchase a home sooner.

Under the FHBG, the government guarantees up to 15% of your home loan, allowing you to buy a property with as little as a 5% deposit, while avoiding LMI.

Each financial year, 35,000 places are available under this program.

💰 How Much Deposit Do You Need?

To qualify for FHBG, eligible buyers must have between a 5% and 20% deposit. But here’s the best part:

  • Single parents with at least one dependent child can buy a home with as little as a 2% deposit!

👥 Who Is Eligible for FHBG?

To apply for the First Home Guarantee, you must meet the following criteria:

  1. Apply as an individual or a couple.
    New for this year: “Couple” now includes friends, siblings, and family members applying together as joint applicants.
  2. Be an Australian citizen.
    New this year: Permanent residents (PRs) are now eligible!
  3. Be at least 18 years old.
  4. Have a taxable income of:
    • Up to $125,000 as an individual
    • Up to $200,000 as a couple
  5. Live in the purchased home as your principal place of residence.
  6. Be a first home buyer.
    New this year: You may still qualify if you haven’t owned a home in the past 10 years.

📄 What’s a Notice of Assessment (NOA)?

Your NOA is issued by the ATO after you submit your tax return. Banks use it to verify your income eligibility for FHBG.

You can find it in your myGov inbox once available.

🏠 What Types of Property Can You Buy with FHBG?

FHBG applies to a wide range of residential properties, including:

  1. Existing homes (houses, townhouses, apartments)
  2. House and land packages
  3. Separate land and building contracts
  4. Off-the-plan townhouses or apartments

✨ What’s New in This Financial Year?

  • Definition of “Couple” expanded — friends/family can apply together
  • Permanent residents (PR) now eligible
  • Past homeowners may still qualify if they haven't owned a property in the past 10 years

👩🏻‍💼 Thinking of Buying Your First Home?

If you're excited but unsure where to start or whether you qualify for the First Home Guarantee, don’t worry — the right guidance can make all the difference.

👉 Speak to your trusted mortgage expert at VIP Mortgage Solutions today. We’ll help you understand the FHBG benefits, eligibility rules, application process, and risks — so you can make a confident move toward owning your first home.

Get in touch today, and let us help turn your homeownership dream into a reality! 🏡✨

Visit our website to learn more: openmortgage.au