Buying a first home in Australia can feel like a moving target, especially when saving a full 20% deposit is the main hurdle. The First Home Guarantee Scheme is designed to help eligible buyers purchase a home sooner by allowing a much smaller deposit in many cases. This guide explains who qualifies, what counts as an eligible property, and what applicants should prepare before they speak to a participating lender about the First Home Guarantee Scheme. What is the First Home Guarantee Scheme? The First Home Guarantee Scheme is an Australian Government support program that can let eligible first home buyers purchase with a low deposit by reducing or avoiding Lenders Mortgage Insurance (LMI). It is accessed through participating lenders rather than directly through a government office. In practice, applicants still take out a standard home loan, but they must meet both the lender’s criteria and the program’s rules to use the First Home Guarantee Scheme. Who can apply for the First Home Guarantee Scheme this financial year? Applicants generally need to be genuine first home buyers, meet income limits, and be Australian citizens or permanent residents (where permitted by the program settings). They must also intend to live in the home as their principal place of residence. To qualify for the First Home Guarantee Scheme, they typically need to apply as an individual or a couple, stay within property price caps for their location, and use a participating lender that has available places. Do they need to be first home buyers, and what counts as “first home”? Yes, in most cases they must not have previously owned or had an interest in residential property in Australia. “Owned” can include a home they lived in, an investment property, or shared ownership in some situations. If they are unsure whether past circumstances count, they should clarify early with the lender, because eligibility for the First Home Guarantee Scheme can hinge on ownership history. What citizenship or residency status do they need in Australia? They usually need to be Australian citizens, and some program settings may also allow eligible permanent residents depending on the specific guarantee and current rules. Lenders will also apply their own ID and residency checks as part of the loan process. Because lenders assess applications, they should confirm residency eligibility with a participating lender before relying on the First Home Guarantee Scheme in their plans. What income limits apply to applicants? Income limits apply, and they are based on taxable income assessed using an applicant’s Notice of Assessment (or other accepted evidence). The limit can differ depending on whether they apply as a single person or as a couple. They should treat the income cap as non negotiable for the First Home Guarantee Scheme. If their latest assessment is close to the threshold, they may need to plan timing and documentation carefully. What deposit do they need, and is LMI always avoided? Applicants usually need a minimum deposit, often discussed as a low percentage compared to standard lending expectations. The program’s purpose is to reduce the need for LMI, but the exact outcome depends on their deposit size, lender policy, and how the loan is structured. They should still budget for other upfront costs like conveyancing, building and pest inspections, and loan fees, even when using the First Home Guarantee Scheme. Do they have to live in the home, and how long must it be owner occupied? Yes, they generally must intend to move in and live in the property as their principal place of residence. The program is not designed for investors buying their first property and renting it out from day one. If their situation changes, they should get advice from the lender and check the occupancy requirements tied to the First Home Guarantee Scheme, because non compliance can create complications. What types of properties are eligible in Australia? Eligible properties usually include an existing house, townhouse, apartment, or certain forms of new builds, depending on the guarantee type and current rules. In some cases, a house and land package or off the plan purchase may be eligible. They should confirm the property type before signing a contract, since the First Home Guarantee Scheme can have specific requirements that affect what they can buy. Are there property price caps by state, territory, and region? Yes. There are price caps and they vary by location, often with different thresholds for capital cities compared with regional areas. These caps can affect what suburbs and property types realistically fit within the program. Before they start inspections, they should check the relevant cap for their area and keep their search aligned with the First Home Guarantee Scheme limits to avoid wasting time. Can they use the scheme for regional areas and smaller cities? Yes, and for many buyers the caps and available stock can make regional markets a more practical match. Regional NSW, regional Queensland, and parts of Victoria can offer more options under the caps than inner city areas. Even so, they should consider employment, transport, and long term plans, because the First Home Guarantee Scheme helps with entry costs, not with the ongoing realities of living further from major centres. Can they apply as a couple, and what if only one person is buying? Couples can typically apply together, and their combined income is assessed against the couple limit. If only one person is buying, their individual income is assessed, and the lender will look at serviceability on that single income. Ownership structures matter too. They should make sure the names on the contract and loan align with the lender’s process for the First Home Guarantee Scheme. What if they have dependants, are single parents, or are separated? Some related guarantees and pathways may exist for eligible single parents, and separated applicants may still qualify depending on property history and how assets were held. The key issue is whether they have previously owned property and whether they meet current eligibility settings. Given the complexity, they should ask