The First Home Guarantee (FHBG) sets different property price caps depending on which state or territory you’re buying in. These caps represent the highest property value you can purchase under the scheme. The FHBG is designed to help eligible first-home buyers get into the market with as little as a 5% deposit—without paying Lenders Mortgage Insurance (LMI).
Below are the current FHBG price limits by state and territory, as outlined by Housing Australia:
New South Wales
- $900,000 for capital cities and major regional hubs
- $750,000 for other regional locations
Victoria
- $800,000 for capital cities and major regional hubs
- $650,000 for other regional locations
Queensland
- $700,000 for capital cities and major regional hubs
- $550,000 for other regional locations
Western Australia
- $600,000 for capital cities and major regional hubs
- $450,000 for other regional locations
South Australia
- $600,000 for capital cities and major regional hubs
- $450,000 for other regional locations
Tasmania
- $600,000 for capital cities and major regional hubs
- $450,000 for other regional locations
Australian Capital Territory
- $700,000
Northern Territory
- $600,000
Important things to know
- The FHBG can’t be used for investment properties or interest-only loans.
- Available to both singles and couples who meet the eligibility rules.
- You’ll need a deposit between 5% and 20% of the property’s value, and you must put forward the maximum funds you can contribute.
- Only Australian citizens and permanent residents are eligible.
- The FHBG can’t be combined with the Family Home Guarantee or the Regional First Home Buyer Guarantee (RFHBG).
A quick note on the RFHBG
The RFHBG applies specifically to regional areas and comes with extra residency requirements. At least one applicant must have lived in the target regional area—or a neighbouring regional area—for at least 12 months before the date of the home loan. Capital cities and major regional hubs are excluded from this scheme.
You can check your eligibility for the FHBG and RFHBG in the following link, it’s best to use the Eligibility Tool on the Housing Australia website and consult with participating lenders.
Disclaimer: this article is for information purposes only and should not be taken as financial advice. Please consult a qualified accountant or financial advisor for the correct guidance and what ultimately best suits your needs and requirements.
