What is the eligibility for the First Home Guarantee in 2026?

The First Home Guarantee is one of the most useful schemes for first home buyers, and it changed substantially in late 2025, so a lot of information online is now out of date. Here is how it works and who is eligible as at 2026, with the current rules.

What the guarantee does

The First Home Guarantee lets eligible first home buyers purchase with a deposit as low as 5 per cent without paying Lenders Mortgage Insurance. The government guarantees part of the loan, up to 15 per cent of the property value, so the lender does not require the premium. The government does not lend you money and does not take a stake in your home, it simply guarantees part of the loan to the lender.

It is administered by Housing Australia

The scheme is administered by Housing Australia and now sits within the expanded national deposit scheme. You do not apply to Housing Australia directly. Instead you apply through a participating lender or through a broker who works with one, which is part of why a broker can be useful here.

What changed from 1 October 2025

From 1 October 2025 the scheme was significantly expanded. The income caps that previously applied were removed, the annual limit on the number of places was removed, and the property price caps were lifted. This opened the scheme to many more buyers than before, so if you were previously ineligible on income or missed out on places, it is worth checking again.

The current property price caps

The scheme applies only to properties at or below the price cap for your location. As at 2026 the cap in Adelaide is 900,000 dollars, having been lifted from its earlier level. Caps differ by city and region, for example higher in Sydney and lower in some smaller markets, so you should check the current cap for the exact area you are buying in against the official source.

Who is eligible

To be eligible you generally need to be an Australian citizen or permanent resident, at least 18 years old, and buying as an owner occupier rather than an investor. You normally need to be a first home buyer, though there is now a provision for people who have not owned property in Australia in the past 10 years. You also need at least a 5 per cent deposit and to be buying within the price cap.

You must move in

Because the scheme is for owner occupiers, you are generally expected to move into the home, typically within around six months of settlement, and to live in it. It is not designed for investment purchases, so buying purely to rent out would not qualify.

Related streams

There are related guarantee streams for particular groups, including a stream for single parents that allows an even lower deposit. The exact deposit level and conditions for those streams differ, so if you are a single parent or in another targeted group it is worth checking which stream fits your situation.

Check your eligibility properly

Because the rules changed recently and the caps differ by area, the reliable step is to confirm the current rules and your eligibility before you plan around the scheme. A broker who works with participating lenders can check whether you qualify and apply on your behalf, usually at no cost to you. Always verify the current figures against Housing Australia.