Glossary · Australian property
Home Guarantee Scheme (HGS).
A federal scheme that lets eligible first home buyers, key workers, and single parents borrow up to 95% LVR without paying LMI.
HGS (administered by Housing Australia) provides a federal government guarantee of up to 15% of the property's value, removing the LMI requirement on high-LVR loans for eligible buyers. Three components: First Home Guarantee (FHG, 5% deposit), Family Home Guarantee (FHGSP, single parents 2% deposit), Regional First Home Buyer Guarantee (RFHBG, regional FHBs 5% deposit).
FY2025-26 income caps: $125K single, $200K combined. Property caps vary by state and region: $900K NSW + VIC metro at the top, $600K smaller-state regional at the bottom. Places allocated each financial year. Apply early, particularly if rates are falling (popular cycle).
HGS doesn't reduce loan amount. You still borrow 95%, but you save the LMI premium ($15K-$25K typical) and start building equity 1-2 years earlier than waiting to save 20%.
Source
Housing Australia + Treasury administered scheme; National Housing Finance and Investment Corporation Act 2018.
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