How 193,000 Aussies Got into Their First Home Sooner

If buying your first home feels like an impossible dream, there’s one scheme you need to know about — the Home Guarantee Scheme (HGS). It’s already helped more than 193,000 Australians get into the property market since 2020, and it could help fast-track your home ownership journey too.

Here’s how it works, and why it’s worth a closer look.

The Struggle to Save a Deposit

For most first home buyers, saving the traditional 20% deposit is the biggest hurdle — especially with today’s soaring living costs.

In fact, research from CoreLogic shows that, on average, it now takes over 10 years to save a first home deposit.

That’s where the Home Guarantee Scheme comes in. With this scheme, you could buy your first home with just a 5% deposit, without needing to pay lenders mortgage insurance (LMI).

It’s no surprise that 193,000 first home buyers have jumped on board since the scheme kicked off.

What Exactly is the Home Guarantee Scheme?

Unlike a cash grant, like the First Home Owner Grant, the HGS works a bit differently. Instead of giving you money, the federal government guarantees part of your loan.

This opens up two key advantages for first home buyers:

1. Buy with a smaller deposit: Participating lenders can approve home loans with just a 5% deposit under the HGS.
2. Avoid lenders mortgage insurance: Normally, if your deposit is under 20%, you’d have to pay LMI — which can add up to tens of thousands of dollars. But under the HGS, the government acts as guarantor, so you’re off the hook for LMI.

Three Different Types of Guarantees

There’s not just one, but three different guarantees under the HGS, tailored to suit different buyer groups.

1. First Home Guarantee

The First Home Guarantee is designed specifically for first home buyers, giving you a faster way into the market.

35,000 places are available for the 2024-25 financial year.

2. Regional First Home Buyer Guarantee

Buying in a regional area? The Regional First Home Buyer Guarantee is aimed at helping regional first home buyers get a foot in the door — but there are only 10,000 places available this year, so you’ll want to move quickly.

3. Family Home Guarantee

If you’re a single parent, the Family Home Guarantee offers even more flexibility.

With just a 2% deposit, eligible applicants (including those who’ve owned property before) can buy a home — again, without needing to pay LMI.

There are only 5,000 places for the 2024-25 financial year, so this one’s also in high demand.

Why the 5% Deposit Scheme is Gaining Popularity

Five years ago, only about 1 in 10 first home buyers used the HGS. Today, it’s closer to 1 in 3.

Of course, rising property prices, higher interest rates, and cost of living pressures all play a part. But the scheme’s recent eligibility expansion is a game-changer too.

Now, you can apply if you’re buying with a sibling, friend or other family member, or you’ve owned property before (but not in the last 10 years).

What’s the Catch?

Like any government scheme, there are some eligibility criteria to meet.

• Your income needs to fall within the limits set by the scheme.
• The property price you’re looking at needs to sit below the price caps for your area.
• Plus, not all lenders participate, so your lender options could be narrower than usual.

Let Osinski Finance Help You Make It Happen

We’d love to help you determine whether you qualify for the Home Guarantee Scheme or learn how to get into your first home faster.

At Osinski Finance, we specialise in helping first home buyers understand their options and find the right lender to suit their situation. We’ll handle the paperwork, eligibility checks, and lender research, so you can focus on planning your move.

We also work with property investors looking to grow their portfolio, as well as homeowners who want to refinance their loan to get a better deal. Whatever your property goals, we’re here to make the finance side easy. Give us a call today!

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