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Home Guarantee Scheme (HGS)

  • Feb 16
  • 2 min read

Updated: Mar 6

What First‑Home Buyers Need to Know in 2026


The Home Guarantee Scheme (HGS) is Australia’s flagship federal program helping eligible buyers enter the property market with a smaller deposit and no Lenders Mortgage Insurance (LMI). It has become one of the most widely used pathways into home ownership, especially after major reforms took effect from 1 October 2025.



What the HGS Offers

The HGS allows qualifying buyers to purchase a home with:

  • As little as 5% deposit, and

  • No LMI, because the government guarantees up to 15% of the loan.

This dramatically reduces upfront costs and shortens the time needed to save a deposit.


Key Changes That Took Effect in Late 2025

Recent reforms significantly expanded the scheme’s accessibility:

  • No income caps

  • No limit on number of places

  • Higher property price caps across Australia (e.g., Sydney up to $1.5M)

  • Broader eligibility, including some returning buyers who haven’t owned property recently


These reforms allow more Australians to participate, particularly in high‑cost cities.


The Four Guarantees Within the HGS

The scheme includes several streams:

1. First Home Guarantee (FHBG)

For first‑home buyers purchasing anywhere in Australia.

  • 5% deposit, no LMI

  • New elevated price caps apply


Regional First Home Buyer Guarantee (RFHBG)


For eligible buyers in designated regional areas.

  • 5% deposit, no LMI

  • Regional price caps apply


Family Home Guarantee (FHG)

For single parents or single legal guardians.

  • 2% deposit, no LMI


Expanded Access Guarantee (Post‑2025 Reform)


  • Removes income caps and annual place limits

  • Provides broader access to low‑deposit pathways


Why the HGS Matters in 2026

With property prices rising and deposits becoming harder to save, the HGS continues to play a critical role in:

  • Reducing upfront costs

  • Accelerating market entry

  • Helping buyers avoid $10,000–$30,000+ in LMI

  • Supporting affordability for single parents and regional communities


Who Should Consider the HGS?

The scheme is especially beneficial for:

  • First‑home buyers with strong incomes but limited deposits

  • Single parents needing accessible pathways

  • Regional buyers facing tight rental markets

  • Returning buyers who no longer own property

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