The First Home Guarantee lets you buy with as little as a 5 per cent deposit and pay no lenders mortgage insurance, because the Australian Government guarantees part of your loan to the lender. From 1 October 2025 the scheme was opened right up: the income caps were removed and the limit on the number of places was abolished, so every eligible first home buyer can now access it.

The key settings

You need a 5 per cent genuine deposit, and a gifted deposit or the First Home Owner Grant generally counts. There are no income caps. The property price cap for Perth is $850,000, which comfortably covers most apartments, villas, and townhouses in the inner-city corridor, and a large share of houses. You buy through a participating lender, and the guarantee replaces the lenders mortgage insurance you would otherwise pay on a small deposit, which is often a saving in the tens of thousands.

Who qualifies

Australian citizens and permanent residents aged 18 or over who have not previously owned property in Australia, buying as owner-occupiers. Couples, friends, and siblings can apply together under the broader guarantee settings.

The move-in rule, and why it bites on tenanted properties

You are expected to move into the property within 6 months of settlement and live in it as your home. This is the tightest move-in deadline of the major schemes, and it is exactly where tenanted properties catch people out. A sitting tenant with 7 months left on a fixed term lease outlasts your 6 month window, and the lease survives settlement, so you cannot simply move them on. Under the First Home Owner Grant’s 12 month window the same tenancy would be fine. Same property, same buyer, different scheme, different answer. Check the lease dates before you offer, and see the full comparison on our First Home Buyers page.

Back to the First Home Buyers page, or contact us to hear about properties that fit before they hit the portals.

General information only, not financial or legal advice. Rules change. Confirm the current position with Housing Australia and your lender or broker. Settings as at August 2026.