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Government Schemes
Pyrmont, Sydney, Your Local Mortgage Broker.
Navigating the Government Guarantee Schemes.
Home Guarantee Scheme (HGS) administered by Housing Australia on behalf of the Australian Government, the Home Guarantee Scheme (HGS) is established to support eligible home buyers in accelerating their home purchase.
The Scheme includes three types of Guarantees:
The First Home Guarantee (FHBG) assists eligible individual in accelerating their home purchase, requiring a minimum deposit of 5%. A total of 35,000 places are allocated for the 2024-25 financial year.
Designed for eligible regional home buyers, the Regional First Home Buyer Guarantee (RFHBG) helps them buy a home sooner in a regional area with a deposit as low as 5%. There are 10,000 places allocated for the 2024-25 financial year.
Specifically for eligible single parents and single legal guardians with at least one dependant, the Family Home Guarantee (FHG) helps them buy a home sooner by allowing a deposit as low as 2%. 5,000 places have been allocated for the 2024-25 financial year.
Under the FHBG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to buy a home with as little as 5% deposit without paying Lenders Mortgage Insurance.
For the FHBG, any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan. Eligibility criteria apply.
From 1 July 2024 – 30 June 2025, 35,000 FHBG places are available.
Please note the relevant Notice of Assessment (NOA) that your lender will require to validate your eligibility for a HGS Guarantee.
For reservation for a Scheme Place made by a Participating Lender on or before 30 June 2024, the 2022-23 NOA will be required. A Guarantee can be issued (and settlement occur after this date, subject to all other criteria being met).
For reservations for a Scheme Place made by a Participating Lender on or after 1 July 2024, the 2023-24 NOA will be required. A Participating Lender can provide a 90-day expiry period whilst the NOA is being obtained however will be required prior to any Guarantee being issued and settlement occurring.
The FHG aims to support eligible single parents or eligible single legal guardians of at least one dependent to buy a home, whether that single parent or single legal guardian is a first home buyer or a previous homeowner. From 1 July 2024 – 30 June 2025, 5,000 FHG places are available.
Under the FHG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to purchase a home with as little as 2% deposit without paying Lenders Mortgage Insurance.
For the FHG, any Guarantee of a home loan is for up to a maximum amount of 18% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan.
Please note the relevant Notice of Assessment (NOA) that your lender will require to validate your eligibility for a HGS Guarantee.
For reservation for a Scheme Place made by a Participating Lender on or before 30 June 2024, the 2022-23 NOA will be required. A Guarantee can be issued (and settlement occur after this date, subject to all other criteria being met).
For reservations for a Scheme Place made by a Participating Lender on or after 1 July 2024, the 2023-24 NOA will be required. A Participating Lender can provide a 90 day expiry period whilst the NOA is being obtained however will be required prior to any Guarantee being issued and settlement occurring.
Regional First Home Buyer Guarantee (RFHBG)
The RFHBG aims to support eligible regional home buyers to buy a home sooner, in a regional area. From 1 July 2024 – 30 June 2025, 10,000 RFHBG places are available.
Under the RFHBG, part of an eligible regional home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance.
For the RFHBG, any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan. Eligibility criteria apply.
Please note the relevant Notice of Assessment (NOA) that your lender will require to validate your eligibility for a HGS Guarantee.
For reservation for a Scheme Place made by a Participating Lender on or before 30 June 2024, the 2022-23 NOA will be required. A Guarantee can be issued (and settlement occur after this date, subject to all other criteria being met).
For reservations for a Scheme Place made by a Participating Lender on or after 1 July 2024, the 2023-24 NOA will be required. A Participating Lender can provide a 90 day expiry period whilst the NOA is being obtained however will be required prior to any Guarantee being issued and settlement occurring.
The First Home Super Saver (FHSS) scheme is a great initiative in Australia designed to help first-time homebuyers save for a deposit by making voluntary contributions into their superannuation fund.
These contributions are taxed at a flat rate of 15% within your superfund. For most people, this is lower than their marginal income tax rate, meaning you pay less tax on this income than if you received it as salary. While the released funds are assessable income, you benefit form a 30% tax offset, reducing the overall tax you pay on those funds.
Using the FHSS scheme, you can contribute up to a maximum of $15,000 in any one financial year, up to a maximum of $50,000 across all years.
Considering the annual and overall limits, you can withdraw:
100% of your eligible personal voluntary contributions you haven't claimed a tax deduction for (non-concessional contributions)
85% of your eligible salary sacrifice contributions (concessional contributions)
85% of eligible personal voluntary super contributions you have claimed a tax deduction for (concessional contributions)
You will also be able to access an amount of associated earnings on both concessional and non-concessional contributions.
You don't need to be an Australian citizen or Australian resident for tax purposes to use the FHSS scheme.
When you’re ready to buy your first home, you request an FHSS determination from the ATO through myGov. This will tell you the maximum amount you’re eligible to withdraw. You must have this determination before the property ownership is transferred to you ( e.g., settlement date).
The content on CCS Lending page explains the basics of the FHSS.
For technical information on the FHSS scheme, see Guidance Note GN 2024/1 First home super saver scheme.
For more information and guidance material, see Taxation Ruling TR 2024/4 First home super saver scheme.
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